DTN Early Word Livestock Comments 06/15 06:26

DTN Early Word Livestock Comments 06/15 06:26 Cattle May See Further Weakness Cattle futures were under substantial pressure Wednesday as feeder cattle led the liquidation with losses of over $4.00. Hogs found solid buying interest as aggressive short-covering is permeating the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $245.86 +$0.68* Hogs: Lower Futures: Mixed Lean Equiv: $96.77 +$0.16** *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: After a slightly higher start to the day, selling became aggressive Wednesday, pushing cattle lower despite there being no direction from cash sales. The market gives the impression it has run out of steam as prices have moved relentlessly higher. However, the gains were justified as cash continued to increase. We are moving closer to July 4th and the dog days of summer, during which beef demand may slow. The high prices may also impact export demand, leaving more for domestic consumption. The action Wednesday may be a much-needed price correction, or it could be an indication of a change in trend. Boxed beef prices were again mixed with choice up $1.07 and select down $0.22. Cash should trade Thursday with the anticipation of steady prices. Feeder cattle were unable to find support anywhere. Lackluster corn prices provided no correlation to trade with futures swinging $5.00 to $6.00 from high to low. This was similar to the move we saw one week earlier after establishing new contract highs.