DTN Early Word Livestock Comments 05/02 06:16

DTN Early Word Livestock Comments 05/02 06:16 Lower Corn Futures May Support Livestock The livestock complex closed in the red Friday with cattle posting losses even though cash was steady or higher for the week. Hogs fell apart on Friday, following the path of least resistance. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $196.30 -$0.11* Hogs: Steady Futures: Mixed Lean Equiv: $111.91 -$1.02** *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: Live cattle succumbed to the idea of more cattle potentially coming to the market over the next few weeks and packers having purchased cattle ahead for the next few weeks reducing the need to be as aggressive in the market. June is the lead month, carrying with it a discount to cash. That discount widened as futures fell $5.78 over last week. This may be tough to overcome as packers may pull back on what they are willing to pay. Boxed beef prices declined with choice down $1.82 and select down $3.09. Cash business may not take place as early this week as it has over the past few weeks as packers may not need to be aggressive and will try to capitalize on the weakness of futures. May feeder cattle moved to the lowest level they have been since June 2, 2021, setting a very negative tone to the market.