DTN Early Word Livestock Comments 06/07 06:49

DTN Early Word Livestock Comments 06/07 06:49 The Sky is The Limit Cattle continue to reach for the stars with no sign of running out of fuel. The early indication is cash cattle will trade higher again this week after light trade Tuesday. Hogs have had an incredible turn of cash as packers want hogs. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $234.82 +$4.13* Hogs: Steady Futures: Mixed Lean Equiv: $92.07 -$4.08** *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 has been no slowing of the climb of cattle futures. Even though the market is overbought and prices extremely high, traders continue to buy futures aggressively as underlying cash supports higher prices. It seems as if packers are trying to outbid each other in the attempt to purchase available cattle. If one passes on an offer, another packer will step in and purchase. There was some light trade in Texas yesterday at $182, which is $2.00 higher than last week. Some dressed cattle sales took place in Nebraska at $300. June cattle futures are just trying to keep up with cash and dragging the other contracts along with them. Boxed beef prices were extremely strong with choice up $7.21 and select up $2.71. Feeder cattle seem to be a bit more reluctant to move higher but are gaining out of necessity to remain in line with live cattle and with demand. Buyers continue to look aggressively for feeder cattle.