DTN Early Word Livestock Comments 05/29 06:26

DTN Early Word Livestock Comments 05/29 06:26 Strong Product Prices Should Support Futures Wednesday Cattle futures had a cautious opening Tuesday and then struggled before finding renewed buying interest. Feeder cattle futures did not share the same sentiment, showing strength as a reaction to the Cattle on Feed report. Hogs struggled the entire day, testing support from The February low. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $229.77 +$1.18* Hogs: Higher Futures: Higher Lean Equiv: $109.25 +$4.26** *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 Cattle on Feed report provided support to cattle futures Tuesday. Feeder cattle were the recipients of strong buying interest from traders. The August contract gained over $4.00 with later contracts not far behind. Live cattle futures did not exceed the highs last week, but the market is supported with June futures holding a discount to cash and continued gains in boxed beef. Choice cuts gained $1.67 with select cuts up $1.71 on Tuesday. Strong demand should keep packers aggressive with slaughter and buying in the country. This will give feedlots confidence to hold for higher cash again this week. Feeder cattle pushed higher as the report showed numbers will remain tight.