DTN Early Word Livestock Comments 05/03 06:16

DTN Early Word Livestock Comments 05/03 06:16 Cattle May See Further Liquidation The pressure was on cattle futures again Tuesday with feeder cattle posting substantial losses. Early cash trade showed further weakness. Hogs held their own as futures consolidated despite higher cash Monday and a possible turn in trend. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $226.91 -$0.92* Hogs: Higher Futures: Higher Lean Equiv: $89.04 +$1.61** *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: Light trade was seen in cash cattle and what took place was not friendly to the market. Some cattle traded in the South $1.00 lower than last week with dressed cattle in the North $3.00 lower. Even though cattle supplies are not abundant, feedlots want to move cattle before further price erosion takes place. Holding cattle may only mean lower prices as this time of year generally shows slower demand. The technically overbought futures market added to the bearishness as long liquidation took place. Boxed beef prices were lower with choice down $0.78 and select down $2.34. This added to the selling pressure. Feeder cattle led the weakness with a decline of nearly $4.00 in all contracts. January fell $4.07. This is the largest one-day decline in the currently traded futures contracts. Lower corn prices had no impact on the selling pressure.