DTN Early Word Livestock Comments 06/22 06:20

DTN Early Word Livestock Comments 06/22 06:20 Hogs May Show Further Gains Live cattle were higher much of Tuesday but slipped back into the close with futures posting minor losses. On the other hand, feeder cattle were very strong with triple-digit gains in reaction to substantially lower corn futures. Hogs could not be held back as packers stepped up to the plate Tuesday, looking to procure hogs for the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $198.18 +$0.58* Hogs: Higher Futures: Higher Lean Equiv: $118.90 -$1.01** *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: Some of the exuberance that carried over from last week's jump in cash has been tempered as the prospect of a repeat of the same looks less likely. However, the $4.00 increase last week was a surprise, so anything is possible again this week. Packers are seeing higher showlists, which may provide them the confidence cattle can be purchased without much difficulty. The pace of cattle slaughter remains brisk, which keeps packers needing cattle. Feedlots may have higher showlists but lower grain prices may give them the confidence to hold for higher cash. Boxed beef prices were higher with choice up $1.06 and select up $0.31. Feeder cattle traders thrived on the lower grain prices, pushing futures significantly higher. That may be tempered a bit with mixed corn futures overnight.