DTN Early Word Livestock Comments 06/21 06:14

DTN Early Word Livestock Comments 06/21 06:14 Cattle Futures May See Further Pressure Cattle faced some headwinds Tuesday resulting in triple-digit losses. The pressure seems to be more than just a price correction in an overbought market. Hogs pushed higher with July leading the charge. Packers continued to bid up for hogs. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $244.44 -$2.26* Hogs: Steady Futures: Mixed Lean Equiv: $101.71 -$1.44** *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: The cattle complex tried to rally early Tuesday but succumbed to selling pressure as the potential for lower cash cattle this week may be a reality. Bids that surfaced Tuesday were lower than where cattle prices were traded last week. The weakness of futures might be more than just a technical price correction in an overbought market. August cattle closed below $170 for the first time since May 31. Boxed beef declined with choice down $3.23 and select down $2.83. Cattle supplies are tight, but high prices cure high prices with demand potentially slowing seasonally. Feeder cattle were under pressure Tuesday, even though corn prices did not show much gain but had a volatile day. Pressure is likely again Wednesday as corn prices were significantly higher overnight due to a 6% decline in the good-to-excellent crop condition last week.