DTN Early Word Livestock Comments 06/09 06:26

DTN Early Word Livestock Comments 06/09 06:26 WASDE Report May Provide Direction Cattle futures tried to move higher Thursday but succumbed to further selling pressure in the end. This is surprising as cash cattle traded higher this week. Hogs put in somewhat of a quiet day with August closing its chart gap. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $239.50 +$2.32* Hogs: Lower Futures: Mixed Lean Equiv: $92.77 +$0.53** *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: It was surprising livestock futures closed lower Thursday. The market looked as if it was going to rebound, only to run out of aggressive buying interest in the end. Cash cattle traded higher this week in the North while most Southern trade should take place Friday. So far it has been light, but what has taken place has been $3.00 to $7.00 higher. Boxed beef was strong again Thursday with choice cuts up $3.54 and select up $2.54. So far, it has been a strong week for boxed beef, which provides the confidence for feedlots to hold for higher cash. Weekly export sales totaled 12,800 metric tons (mt) which was down 29% from the previous week, indicating higher prices may be impacting international demand. Feeder cattle futures began slipping as corn futures began climbing from early losses. Feeder cattle are in demand with higher prices being paid at auctions, but traders traded market correlations and corn in one of those correlations. The WASDE report will impact grains and that may provide direction for cattle.