DTN Early Word Livestock Comments 05/22 06:19

DTN Early Word Livestock Comments 05/22 06:19 Further Strength in Cattle Futures Cattle are on a roll and trending higher. Higher boxed beef indicates strong demand and packers will need to supply it. Hog futures remained under pressure with lower lows again made. Cutouts continue to struggle. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $229.79 +$0.57* Hogs: Higher Futures: Higher Lean Equiv: $106.55 -$1.08** *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 opened higher Tuesday and closed higher with August live cattle above $180, the highest close since March 22. The February contract closed above $190. Demand continues to support the market with boxed beef showing further strength with a gain of $0.32 for choice and $1.52 for select. This will give feedlots confidence to hold out for more this week. The Cattle on Feed report will be released Friday after the close with traders likely beginning to turn their attention to it Wednesday. Traders are facing two aspects of the market that will impact trading activity -- the Cattle on Feed report and the three-day weekend. The Friday of Memorial Day weekend generally has significantly lighter trade as the attention is focused on the kick-off weekend of the summer. Then there is the report that will not be traded until next week on Tuesday. Traders may reduce their risk ahead of the weekend. The estimates for the report are for on-feed number May 1 of 99.1% of a year ago. Placements in April at 93.3% and marketings at 109.5%.