DTN Early Word Livestock Comments 05/08 06:20

DTN Early Word Livestock Comments 05/08 06:20 Hogs Struggle to Find Solid Support Livestock futures were higher Tuesday with hog futures showing minor gains while cattle showed mostly triple-digit gains. Some optimism showed over improved demand with strong product prices on Monday. Traders felt a little better about the cash potential. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $220.59 +$0.41* Hogs: Lower Futures: Mixed Lean Equiv: $102.98 -$2.41** *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 strength of boxed beef Monday supported the potential for increased demand from the packers for cattle this week. Traders feel cash will be at least steady with last week and supportive of the market. However, the movement of boxed beef in one day does not mean a change in trend. Boxed beef prices on Tuesday were mixed with choice down $0.29 and select up $2.59. Even though the weakness of choice cuts was minor, it does keep demand in check. The support may come from the increasing chain speed requiring packers to purchase more cattle. The avian flu in dairy cattle seems to be old news as no threat to the food supply has been found.