DTN Early Word Livestock Comments 05/17 06:18

DTN Early Word Livestock Comments 05/17 06:18 Hogs May Show Further Gains Live cattle traded higher and remained higher into the close Monday. There was renewed hope that packers may be a bit more aggressive this week as they prepare for Memorial Day demand. Feeder cattle were under pressure due to the strength of corn. Hogs had another explosive day with aggressive buying of futures and triple-digit gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $193.93 +$1.05* Hogs: Steady Futures: Higher Lean Equiv: $108.97 +$0.38** *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 spent most of the day in positive territory, closing near the highs of the day. Even though packers have some cattle already committed for the next few weeks, increasing slaughter rates may require them to bid steady to higher this week in the cash market. However, traders will wait to see confirmation of cash before becoming too excited. The higher corn prices may have feedlots wanting to move cattle quickly rather than holding for better prices. Boxed feed showed choice up $1.36 and select up $1.77. Feeder cattle were under pressure due to higher corn futures. However, the losses were confined to double digits. August feeders made a new contract low before rebounding, limiting the loss. The Commitment of Traders showed funds as net sellers of 8,948 live cattle contracts, bringing their net total longs to 29,949 contracts.