DTN Early Word Livestock Comments 05/02 06:11

DTN Early Word Livestock Comments 05/02 06:11 Mixed Trade Over Cash Uncertainty Cattle were under pressure Monday as concern mounted over ongoing demand. Lower cash last week may be difficult to overcome. Hogs took a breather, even though cash was strong to begin the week. A sell-the-rally mentality was evident. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $227.83 -$0.14* Hogs: Higher Futures: Higher Lean Equiv: $87.43 -$0.85** *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 traders did not have much to go on Monday to trigger a price rebound. There was only speculation as to what cash might do. Mixed boxed beef prices raised some concern over whether demand will be maintained moving through the month of May. Choice cuts were down $1.42 with select cuts up $2.66. The fact that 43% of the cattle purchased last week were purchased for deferred delivery puts packers in a much better position this week. Feedlots may be more interested in moving cattle this week rather than holding out and carrying cattle over another week, only to sell for lower prices again. Cattle supply has not suddenly become more plentiful, but it is possible high prices have accomplished the job of slowing demand.