DTN Early Word Livestock Comments 05/07 06:15

DTN Early Word Livestock Comments 05/07 06:15 Strong Product Values May Support Futures Live cattle futures had minimal losses in contracts Monday, other than the front-month June. Feeder cattle were under more pressure with triple-digit losses. Hog futures could not find sufficient buying interest to move futures to positive territory. The June contract fell and closed below support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $220.18 +$2.70* Hogs: Higher Futures: Higher Lean Equiv: $105.39 +$1.38** *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: Traders began the week with caution and concern over demand. Slaughter was higher last week but that provided no guarantee it would continue. Higher cash the previous week was unexpected but gave feedlots hope that cash will be no worse than steady this week. However, packers purchased cattle for deferred delivery again last week which may keep them less aggressive this week even if they maintain a higher slaughter pace. Boxed beef prices were strong Monday with choice up $4.56 and select up $2.10. Feeder cattle showed pressure as buyer resistance has developed with feeder cattle prices showing some weakness.