DTN Early Word Livestock Comments 06/02 06:24

DTN Early Word Livestock Comments 06/02 06:24 Price Strength May Stall Cattle futures were higher across the board with feeder cattle leading the way. Another day of substantially lower corn prices was finally enough to trigger buying in feeder cattle that spilled over into live cattle. Hogs quickly moved higher on another strong day of cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $198.13 -$0.01* Hogs: Higher Futures: Higher Lean Equiv: $117.67 +$2.31** *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: June live cattle seemed to think it was time to narrow the gap between futures and cash. The light trade that developed Wednesday points to lower cash this week but even lower cash leaves futures at a discount. However, lower corn prices may provide feedlots with some bargaining power as cattle ready for marketing seem to be current. Cash trading activity is expected to increase Thursday. Boxed beef prices did not provide much support with choice down $0.12 and select up $0.26. Boxed beef price may continue in somewhat of a sideways range as inflation impacts consumer spending. Weekly export sales will be delayed until Friday due to the holiday on Monday.