DTN Early Word Livestock Comments 05/30 06:18

DTN Early Word Livestock Comments 05/30 06:18 Traders May Begin Week With Caution Live cattle futures closed in positive territory with all contracts posting new highs. Demand continues to remain strong in the face of tightening supplies. Feeder cattle could not follow the same pattern, closing lower as traders positioned for the weekend. Hogs plummeted with no short-covering taking place as cash continued lower. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $224.17 +$2.05* Hogs: Steady Futures: Mixed Lean Equiv: $89.28 +1.06** *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: Higher cash cattle last week propelled live cattle futures to new contract highs. It is amazing to see strong beef demand as prices continue to rise at the retail and food service level. Consumers continue to work beef into their food budget. Tightening beef supplies keep packers needing to step up to the plate. There was a report that some packers had purchased cattle for delivery 2 to 3 weeks out and then took them for delivery a couple days later as they needed cattle. This may limit the amount of cattle that are purchased and available with time. Boxed beef was strong Friday with choice up $3.99 and select up $0.38. The Commitment of Traders report showed funds adding 2,003 long futures, bringing their net-long futures position to 101,040 contracts. Feeder cattle long positions increased by 2,085 contracts to a net long 15,987 futures contracts.