DTN Early Word Livestock Comments 05/04 06:21

DTN Early Word Livestock Comments 05/04 06:21 Hog Futures May Bounce Feeder cattle rallied again off the weakness of corn, nearly eliminating the losses from last week. Live cattle went along for the ride but only posted minor gains as traders pondered cash potential. Hogs continued to plummet, seeming determined to fulfill the technical objective. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $194.18 -$1.67* Hogs: Higher Futures: Mixed Lean Equiv: $112.99 -$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 closed higher with minimal gains as traders are cautious over cash potential. Cash business has not really surfaced with expectations of trading to take place Wednesday. However, it does seem packers may not be as aggressive this week and may wait it out another day before doing a large volume of business. With lower corn prices over the past two days, feedlots may be encouraged to hold out for higher cash while at the same time, packers have a fair amount of cattle already on the books. Boxed beef prices declined Tuesday with choice down $3.00 and select down $0.89. Feeder cattle futures have reacted much more positively to lower corn prices and to beneficial moisture that has fallen in areas that is improving pasture growth.