DTN Early Word Livestock Comments 05/15 06:21

DTN Early Word Livestock Comments 05/15 06:21 Traders to Begin Week With Caution Cattle put in a strong close with feeder cattle leading the way. The bearish reaction of corn to the WASDE report was much of the catalyst to trigger reactive buying interest. Hogs struggled much of Friday, closing mixed as the market digested the Prop 12 decision and coasted into the weekend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.83 -$0.53* Hogs: Steady Futures: Mixed Lean Equiv: $90.44 +$0.23** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: There was no change in cash Friday with the business for the week showing Southern cattle trading $2.00 lower and Northern dressed cattle $1.00 lower. Traders seemed to believe the bleeding may be near the end and the discount of futures to cash seems to be sufficient for now. Boxed beef was mixed Friday with choice down $1.11 and select up $0.10. Boxed beef prices will be the area to watch this week to see if they can hold or if there will be a slow erosion of prices. The WASDE report showed USDA's estimate for beef production up 146 million pounds with the average price up $2.30 per cwt at $166.50. The first estimates for 2024 were released with an average steer price of $172.00. The Commitment of Traders report showed funds reducing their long live-cattle futures positions by 12,134 contracts, reducing their net-long positions to 94,010 contracts. Feeder cattle were trimmed 2,416 contracts to a net-long futures position of 11,757.