DTN Early Word Livestock Comments 05/16 06:10

DTN Early Word Livestock Comments 05/16 06:10 Higher Corn to Pressure Cattle Live cattle just could not find solid support, even though corn futures closed lower on the day. Feeder cattle capitalized on that with contracts rebounding from the lows. Hog futures had strong buyer interest as Friday progressed with June, July and August contracts posting triple-digit gains. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $192.88 +$0.49* Hogs: Higher Futures: Mixed Lean Equiv: $108.59 +$2.54** *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: June live cattle futures was the only contract able to post a gain on Friday as it already has a discount to cash. However, later contracts made new recent lows, moving futures back to the levels last seen in November 2021 for the August contract. The concern over demand has been rearing its ugly head as consumers look at their grocery bill along with filling up their car with gas. Although boxed beef prices were mixed Friday with choice up $1.75 and select down $0.46, the outlook for summer demand seems a bit more bearish. Packers were able to purchase cattle at steady to $0.50 lower cash last week, adding to the cattle they have already purchased ahead. The jump of corn futures overnight, due to spillover from wheat as India halts their exports of wheat to fight soaring inflation in the country, will have a negative impact on the cattle complex.