DTN Early Word Livestock Comments 05/10 06:20

DTN Early Word Livestock Comments 05/10 06:20 Economic Factors Impact Prices Cattle did not react to lower corn futures with traders focusing on different influences rather than just trading opposite corn. Probably the biggest is the concern over the economy and inflation. Hogs saw a strong day for cash but that could not thwart the selling that gripped the market right from the beginning. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $192.67 +$1.49* Hogs: Steady Futures: Higher Lean Equiv: $111.84 -$0.31** *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 fell substantially early in trading but were able to recover significantly by the end of Monday. It really did not seem that lower corn futures were a large influence as corn futures were significantly lower at the beginning of cattle trading, yet they still opened lower and fell from there before finding support. June live cattle fell to support at the low set on March 4 on demand concerns and the potential for lower cash as packers may not need to be very aggressive buyers this week. However, showlists are mixed and there are a lot of cattle being slaughtered at present. Boxed beef was mixed with choice up $3.85 and select down $1.93. Choice is now running below last year and the three-year average, indicating consumers might be backing away from higher beef cuts due to the impact of inflation. Packers may not be aggressive with cash trading not likely until the second half of the week.