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DTN Early Word Livestock Comments 05/23 06:05

23 May 2023
DTN Early Word Livestock Comments 05/23 06:05 Mixed Trading Activity Expected The cattle complex closed mixed after showing substantial pressure early in the trading period Monday. The negative reaction to the atypical BSE case put pressure, but that was digested into the overall market. Hogs plummeted to new lows again as cash hogs took a beating. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.81 +$1.28* Hogs: Steady Futures: Higher Lean Equiv: $91.80 +$0.39** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages.) ** based on formula estimating lean hog equivalent of gross packer revenue. GENERAL COMMENTS: The knee-jerk reaction to an atypical BSE case discovered in South Carolina was news that caused initial selling in the cattle Monday. There was no threat in this finding as it was atypical and not impacting the export market. But traders wanted news to trade, and this was some news. Early expectations are for cash to trade steady Tuesday as packers may slow slaughter this week in preparation for Memorial Day. Boxed beef prices closed mixed Monday with choice up $2.80 and select down $0.51. Packers have been able to purchase cattle ahead with 24% of last week's purchases for deferred delivery. May feeder cattle go off the board Thursday with August holding a large premium to May, which may be a large gap to fill. However, the demand for feeder cattle is strong, which could support higher prices. The Commitment of Traders report showed funds adding to their long live cattle positions by 5,027 contracts, bringing their net-long futures to 99,037. They added 2,145 longs to feeder cattle, bringing their net-long futures position to 13,902.