DTN Early Word Livestock Comments 05/09 06:23

DTN Early Word Livestock Comments 05/09 06:23 There is Much Uncertainty in the Markets Live cattle continue to chop sideways while feeder cattle are trending lower. The anticipation for cash trade week has become less optimistic. Hog futures had a nice turnaround from the lows, but the buying interest failed to maintain the highs, resulting in a mixed close Wednesday. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $218.96 -$1.63* Hogs: Lower Futures: Higher Lean Equiv: $105.18 +$2.20** *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: Live cattle futures struggled Wednesday as the market fundamentals are not painting a bright picture. Some of the optimism for higher cash again this week has waned with steady money possibly not a potential. The weakness of boxed beef Wednesday was not what bullish traders wanted to see as it raised concerns over demand as we move into the grilling season. Choice boxed beef declined $1.82 while select fell $4.09. The packers may reduce slaughter to try to improve their margins. Heavier weights leave more beef supply available to the market, which has substantially reduced the price of beef trim compared to a year ago. This is keeping the market where it is and limiting upside potential. Feeder cattle have been trending lower eliminating half the gain realized in the second half of April.