DTN Early Word Livestock Comments 05/16 06:21

DTN Early Word Livestock Comments 05/16 06:21 Traders Wait for Cash Activity Thursday Cattle futures were able to post moderate gains Wednesday as traders seem to be waiting for cash activity to surface. That will determine whether live cattle will break out of its range. Hog futures closed mixed with June showing the most pressure. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $224.68 +$1.40 Hogs: Lower Futures: Mixed Lean Equiv: $107.52 +0.19** *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 June live cattle contract holds a discount to cash and cash trading this week will determine whether June will break above the sideways trading range or remain entrenched in it. Cattle have not yet traded, leaving traders guessing as to what will take place. Higher boxed beef prices could increase packer bids but they may continue to hold back as reduced slaughter is improving margins. Demand will need to be met but cattle weights are higher, requiring few cattle for the required tonnage. Boxed beef prices were higher with choice up $2.38 and select up $0.49. It may take more than higher boxed beef prices to increase packer bids. There are sufficient cattle available for demand. Weekly export sales will be released Thursday, but may not have much influence.