DTN Early Word Livestock Comments 05/20 06:12

DTN Early Word Livestock Comments 05/20 06:12 Cattle Find Strong Support Feedlots received what they wanted as higher cash trade unfolded late last week. Both cash and boxed beef provided the support. Hogs could not find any support with new lows again as traders continued to liquidate long positions. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $229.17 +$2.52* Hogs: Steady Futures: Mixed Lean Equiv: $106.71 +$0.62** *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: Cattle futures could not help but increase as cash cattle traded higher Friday. Feedlots held out for higher cash and received it. Northern dressed cattle traded as much as $5.00 higher with Southern live cattle trading $2.00 higher. It appeared cash would be stronger but it was not expected to see these gains. But when boxed beef prices continued to increase, packers had to step up to purchase the cattle needed to meet demand. This may not be repeated this week as the buying ahead for Memorial Day weekend may be finished. Live cattle futures broke through chart resistance which may increase further technical buying. The Commitments of Traders report showed traders adding 966 contract, bringing their net-long futures positions to 41,720 contracts. Feeder cattle moved to a net-long futures position of 4,411 contracts, an increase of 508 futures contracts.