DTN Early Word Livestock Comments 06/05 06:13

DTN Early Word Livestock Comments 06/05 06:13 Futures May Take a Breather Monday The cattle markets were a sight to behold last week with futures showing substantial gains due to incredibly strong cash. Hogs posted a strong week due to gains in cash and cutout prices. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $227.35 +$2.69* Hogs: Lower Futures: Lower Lean Equiv: $91.81 -$0.95** *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 week following Memorial Day was filled with very bullish trade activity. The large jump in cash Thursday pushed cattle futures higher, making the market technically frightening. Underlying fundamentals would not suggest a large retracement anytime soon. However, a large price movement and the current high price levels have moved June near the price level where April cattle left off. The market is trying to find a level at which demand will slow but has been unable to do so. Boxed beef was higher with choice up $3.49 and select up $4.61. Beef is in demand and packers are looking for cattle, which could carry over this week. Weekly export sales were neutral at 18,100 metric tons (mt). Feeder cattle put in a strong week with new contract highs each day. Fund traders added 4,286 long futures positions to their portfolio, according to the Commitment of Traders report, bringing their net-long futures in live cattle to 105,326 contracts. Funds added 475 long feeder cattle positions to bring their net-long futures positions to 16,462 contracts.