DTN Early Word Livestock Comments 05/23 06:19

DTN Early Word Livestock Comments 05/23 06:19 Cattle Traders Begin Looking Ahead to Cattle on Feed Report Cattle and hogs diverged Wednesday with cattle posting triple-digit gains while hogs showed triple-digit losses. Cattle futures seem to be targeting the highs from March. Hog futures may be heading to the February lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $229.06 -$0.69* Hogs: Higher Futures: Mixed Lean Equiv: $105.93 -$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: Feeder cattle led the charge Wednesday with futures breaking through and closing above technical resistance. Live cattle futures are heading to the highs set in March. The limiting factor Thursday might be the upcoming Cattle on Feed report. Traders may either take some profits or protect their positions with other strategies ahead of the report and the extended weekend. Estimates for the report are for an on-feed number on May 1 of 99.1% of a year ago. Placements in April at 93.3% and marketings at 109.5%. The range of estimates for the on-feed number is 97.9% to 100.5%. Placements again have a wide range of 86.5% to $104.5% and will keep traders cautious going into the report. The range for marketing is from 108.6% to 110.7%. Boxed beef prices were lower with choice down $0.85 and select down $1.26.