DTN Early Word Livestock Comments 05/31 06:15

DTN Early Word Livestock Comments 05/31 06:15 Hog Futures May See Further Strength to Close Out the Month Cattle futures held well after China banned beef from a JBS plant in Colorado. Even though futures showed weakness, prices rebounded from the lows for a second day. Hog futures found buying interest after some contracts made new lows indicating the selling pressure may have subsided. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.60 +$0.22* Hogs: Higher Futures: Higher Lean Equiv: $107.80 +$0.21** *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: It was the second consecutive day that selling put significant pressure on cattle futures only to have the pressure subside as the day progressed. There is concern over China banning beef from a JBS plant in Colorado leaving traders uncertain over the length of the ban. Further testing is being conducted. There was some light cash cattle trade $1.00 lower in the South on Thursday. This may have set the stage for further trade today. No activity was reported in the North. Boxed beef prices closed higher with choice up $0.42 and select of $0.04. This will not have any significant influence on cash trade. Feeder cattle futures closed lower for the second day eliminating the past week's gains.