DTN Early Word Livestock Comments 05/09 06:10

DTN Early Word Livestock Comments 05/09 06:10 Traders Uncertain Over Price Strength Live cattle futures declined as traders were disappointed in the performance of the cash market during the week. Feeder cattle were able to find minor support from lower corn. Hogs fell back as cutouts showed further weakness. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $191.18 -$0.52* Hogs: Steady Futures: Mixed Lean Equiv: $112.15 -$1.55** *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 declined despite lower corn futures Friday. Cattle contracts eliminated the gains of earlier in the week, closing near the levels of a week earlier. Cash trade was mainly finished for the week with steady prices. Packers were able to acquire the cattle they needed last week and were also able to purchase some for the following two weeks. That may leave them less aggressive again this week. Boxed beef prices were lower with choice down $0.74 and select down $0.75, which also leaves a negative tone to the market. Higher food prices may have consumers backing away from higher priced cuts of beef. DOW futures posted significant losses again overnight, indicating more pressure may be put on the economy. Feeder cattle may find further support due to significant losses in corn futures overnight with those losses carrying over Monday. There was stronger demand for feeder steers and heifers last week.