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DTN Early Word Livestock Comments 06/23 06:14

23 Jun 2022
DTN Early Word Livestock Comments 06/23 06:14 Traders Await Further Cash Direction There was pressure on cattle futures Wednesday as cash prices were not looking as promising for the week as had been anticipated. Even lower grain prices could not support the market, which sets a weak tone for Thursday. Hogs followed a similar path despite stronger cash and slightly higher cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $197.55 -$0.63* Hogs: Higher Futures: Higher Lean Equiv: $119.19 -$0.29** *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: Lately, live cattle seem to thrive on the dramatic. Futures many times gap lower or higher and then fill the gap during the same day or later. There seems to be a pent-up energy that builds overnight as traders anticipate market direction. The weakness in cash of $2.00 lower in the South took the wind out of the sails Wednesday. Cash trading volume was light and may not be entirely representative of what will take place for the week; but it does set a weak tone coming into Thursday. It certainly did not help that boxed beef closed lower with choice down $0.99 and select down $0.71. Greater cash trading activity should take place Thursday as packers are already looking at the second half of the week.