DTN Early Word Livestock Comments 05/03 06:24

DTN Early Word Livestock Comments 05/03 06:24 Demand Remains a Concern The cattle complex found the catalyst needed to lift prices higher from the pressure on grain prices. Feeder cattle led the charge with the August contract closing $5.80 higher. Hogs suffered further losses as traders continue to shy away from aggressive buying. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $195.85 +$0.92* Hogs: Steady Futures: Higher Lean Equiv: $114.01 +$2.00** *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: The pressure from last week was relieved Monday thanks to pressure on grain prices. Corn futures are higher overnight, which could temper some of the strength. Feeder cattle showed the most reaction as short-covering propelled the market higher, eliminating the losses of last week. Live cattle were less exuberant but did close higher. Traders are showing caution over cash trade potential this week. Cash trade is not expected to take place early with packers potentially waiting it out as they already have some cattle contracted for the week. Boxed beef provided some support with choice up $1.77 and select up $0.26. However, the erratic nature of boxed beef may leave this less as a market indicator. The Commitment of Traders report showed funds as net buyers of 8,477 contracts increasing their net-long positions to 55,284 contracts for the week ended April 26.