DTN Early Word Livestock Comments 05/30 06:16

DTN Early Word Livestock Comments 05/30 06:16 Cattle Futures Could See Further Pressure Cattle futures opened with minor weakness but fell after China announced they would not accept beef from a processing plant in Colorado. It was a knee-jerk reaction, but a cause for concern. Hogs closed with minor losses unable to uncover aggressive buying interest from Tuesday's stronger cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.38 +$0.61* Hogs: Higher Futures: Higher Lean Equiv: $107.59 -$1.66** *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 did an about-face on Wednesday with a slightly lower open but falling after the news that China would not accept beef from the JBS packing plant in Greely, Colorado. There were traces of ractopamine found in some of the beef to be shipped to China. Ractopamine is intended to provide economic benefits by increasing the rate of gain, improving feed efficiency, and increasing carcass leanness. However, it is banned in Europe, China, and some other countries due to health concerns if consumed. This could be a larger issue and will keep traders on edge. Cattle futures erased the gain from Tuesday and may see further weakness today as traders digest this information. Boxed beef prices were mixed with choice up $1.50 and select down $0.95.