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DTN Early Word Livestock Comments      05/13 06:21
   Futures May Bounce Into Weekend

   It has not been a good week for the livestock complex. Concern over demand
seems to be the overriding factor in the market. Cattle may face more pressure
next week as packers may not be aggressive. Hog futures continue to fall off a
cliff as buyers of futures keep getting run over and fundamental support
remains elusive.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady       Futures: Mixed    Live Equiv:    $193.39 +$1.51*

   Hogs: Lower         Futures: Mixed    Lean Equiv:    $106.05 -$0.89**

   *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


   Cattle futures have struggled all week with June live cattle futures closing
at the lowest level since Oct. 6, 2021. The anticipation of higher beef prices
due to strong demand and lower cattle supplies ran out of steam in February.
Liquidation of cattle due to the ongoing drought did not impact supplies as
much as anticipated according to the Cattle on Feed reports. Inflation heated
up as well with fears of demand slowing further. June cattle hold a large
discount to cash with the market showing no sign of reducing that discount at
the present time. Steady cash should be viewed as a victory this week, but
there is already concern whether that can be repeated next week. Boxed beef
prices were higher with choice up $2.12 and select up $2.18. USDA raised beef
production for the year and raised the average beef price on the WASDE report,
but that had little impact on trading.
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