DTN Early Word Livestock Comments 05/25 06:20

DTN Early Word Livestock Comments 05/25 06:20 Most Cash Business May Wrap Up Thursday Cattle found the support they needed as cash trading commenced with prices higher than last week. Feedlots' higher asking prices were met as packers wanted cattle. Hogs had a tough day in nearby contracts while showing minor strength in later contracts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $220.15 -$0.67* Hogs: Steady Futures: Mixed Lean Equiv: $97.90 -$2.63** *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: Even though boxed beef prices have been more variable lately, it has not had much impact on overall demand and the need for cattle to be slaughtered. Even with substantially higher retail beef prices, consumers continue to prefer beef. Even with tighter cattle numbers, packers are maintaining slaughter pace to meet demand. Cattle remain available at a price. Feedlots can hold onto cattle longer due to lighter weights if they choose to. That allows them to hold out for steady to higher prices and that is what took place this week. Southern cattle traded steady to $1.00 higher while Northern dressed cattle traded $4.00 to $5.00 higher. Boxed beef prices closed mixed with choice down $2.44 and select up $2.51. Packers may want to finish up with most of their purchases Thursday. Feeder cattle are in demand as buyers at auctions continue to write larger checks to purchase available animals.