DTN Early Word Livestock Comments 05/10 06:25

DTN Early Word Livestock Comments 05/10 06:25 Lower Grain Futures May Provide Support There may be little to get traders excited about in the cattle markets to begin the week. However, a futures base has been built over the past two weeks which may provide solid support. It is difficult to say which way hogs will go Monday. The weakness in closer months might be short-lived if the pattern of the past few months remains intact. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $224.59 +$0.16* Hogs: Higher Futures: Mixed Lean Equiv: $120.38 -0.09** * 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: Cattle have a lot of head wind to move against to begin the week. Traders will have no bids or offers in the cash market to provide any direction. The failed action of futures on Friday also may keep a negative tone in the market. What looked like strong follow-through from Thursday, ran out of buyer interest and fell back. There was nothing to go on in the cash market as business had mostly been accomplished for the week. Boxed beef prices moved substantially higher, but that did not translate to cash prices. I hate to say it, but much of the same may be in store for this week. You can be assured packers are not going to look at higher boxed beef prices and strong demand and decide to bid significantly higher this week just to be nice. They have some cattle purchased ahead and will see no need to throw out bids early. This week will test the resolve of feedlots. However, lower grain futures may relieve some pressure.