DTN Early Word Livestock Comments 05/21 06:17

DTN Early Word Livestock Comments 05/21 06:17 Higher Cash Hog Prices Expected Tuesday Cattle futures tried to make a run higher Monday but came under pressure as corn prices increased. It has been some time since higher grain prices impacted the market. Hog futures could not maintain the strength they had earlier Monday. The packers were not aggressive. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $229.22 +$0.05* Hogs: Higher Futures: Mixed Lean Equiv: $107.63 +$0.92** *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 were unsure of the strength of cash this week as it may be difficult to see a repeat of last week. The strong demand ahead of the Memorial Day weekend may have run its course as boxed beef prices were mixed Monday with choice down $0.75 and select up $1.95. This may be the pattern for the week. Cattle futures made new highs but could not hold onto those highs before falling back. Four days of higher highs and higher lows may give more confidence to traders to remain aggressive buyers. Both live and feeder cattle came under pressure as grain futures increased. It has been some time since this has impacted cattle futures as grain futures have not been as focused on by cattle traders in a while. The Cattle on Feed report will be released Friday, but it is too early for traders to position for the report.