DTN Early Word Livestock Comments 05/12 06:21

DTN Early Word Livestock Comments 05/12 06:21 Reports May Set Price Direction Live cattle were mixed but mostly higher as traders believe cash had been set for the week, leaving little reason to press the market to the downside. Feeder cattle felt the pressure from higher corn futures. Hogs could not find support, making lower lows again looking to fulfill the downside objective of the head and shoulders top. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $190.88 -$0.12* Hogs: Steady Futures: higher Lean Equiv: $106.94 -$0.70** *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: There seem to be no further expectations for any change in cash cattle prices this week. This gave little reason for traders to press the downside any further. The gains in futures Wednesday may be about as good as it gets for now until there is further direction from cash. Boxed beef was slightly lower with choice down $0.16 and select down $0.17. Live cattle bounced from technical support Wednesday overcoming strong corn prices, but traders may wait to see the numbers on the World Agricultural Supply and Demand (WASDE) report before they establish longer-term positions. Weekly exports sales will be the first report to look at Thursday, but it may not provide much direction by itself. The WASDE report will have greater impact on feeder cattle based on USDA's grain numbers.