DTN Early Word Livestock Comments 05/01 06:22

DTN Early Word Livestock Comments 05/01 06:22 Cattle Futures May See Further Pressure From Uncertainty Wednesday The cattle complex came under substantial pressure Tuesday, mainly from the concern over testing ground beef to see whether there is any evidence of the H5N1 virus. The uncertainty triggered the liquidation of futures. Hog futures closed mixed with traders uncertain over cash and demand. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $218.19 -$1.62* Hogs: Higher Futures: Higher Lean Equiv: $104.67 -$0.24** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 cattle market has been reactive to any information that has developed over the discovery of the H5P1 avian flu virus in dairy cattle. The uncertainty of whether it would impact beef cattle has been hanging over the market. USDA announced it would test ground beef in more highly concentrated dairy areas to see whether the H5N1 virus matter is present. This increased the anxiety of traders and triggered liquidation. There has been no announcement of any test results but the "what if" is all it took to increase the selling. Feedlots may want to move cattle more aggressively this week but may find packers will not be aggressive to purchase. Boxed beef prices did not provide any support with choice down $3.16 and select down $0.26.