DTN Early Word Livestock Comments 06/08 06:25

DTN Early Word Livestock Comments 06/08 06:25 Cash Cattle Anticipated to Trade Steady Cattle closed higher Tuesday, even though corn regained more ground. Cattle futures are not just about the price of corn but other fundamentals that support prices. Hogs were under pressure early, but buying interest was uncovered as packers became more aggressive as they needed hogs. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $200.50 +$0.59* Hogs: Higher Futures: Mixed Lean Equiv: $115.48 -$0.96** *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: There was no direction from cash with no activity surfacing. This left traders to trade the anticipation of no worse than steady cash. Although no one tipped their hand Tuesday, the feeling is that feedlots may be able to receive at least steady prices with last week. Live cattle futures regaining the losses of Monday should provide optimism to feedlots. However, higher corn price and another new contract high for July crude oil overnight may influence the outlook for demand. Boxed beef prices Tuesday were mixed with choice up $2.12 and select down $0.32. Feeder cattle closed higher but did not regain the losses of the previous day with futures posting a lower low and lower high. Futures may struggle a little Wednesday.