DTN Early Word Livestock Comments 05/04 06:19

DTN Early Word Livestock Comments 05/04 06:19 Futures May Find Some Stability The livestock complex was under pressure with both cattle and hog futures posting double-digit losses. Liquidation gripped the cattle market the past two days due to cash weakness. Hogs ran out of steam as cash and cutouts slipped. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $226.51 -$0.40* Hogs: Lower Futures: Mixed Lean Equiv: $87.034 -$2.01** *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: The momentum of the cattle market changed with a vengeance, triggering liquidation. Generally, fund liquidation can run for two to three days before the market settles down. Further follow-through weakness could develop Thursday. Cash cattle Wednesday traded in line with Tuesday's trade as Northern dressed cattle were $3.00 lower. The trend of the week seems to have been set, leaving it up to feedlots whether they want to sell or hold over another week. Boxed beef prices were lower Wednesday with choice down $0.15 and select down $1.54. Weekly export sales will be released Thursday morning but may not have any impact on trading unless the change is substantial from last week. Feeder cattle felt pressure from lower live cattle and corn turning the corner and trading higher.