DTN Early Word Livestock Comments 06/22 06:15

DTN Early Word Livestock Comments 06/22 06:15 Feeder Cattle Futures Could Bounce Live cattle futures held well, even though feeder cattle futures plummeted. Traders have anticipated cash trade and have adjusted futures accordingly. Feeder cattle were under pressure from corn. Hog futures tried to push higher but may be running out of steam. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Higher Live Equiv: $242.29 -$2.15* Hogs: Steady Futures: Higher Lean Equiv: $103.17 +$1.46** *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 is struggling. Live cattle futures closed mixed Wednesday, holding their own considering the substantial pressure put on feeder cattle. Traders seem to have adjusted live cattle futures in line with the potential for lower cash again this week. Some light cash trade took place in the South at $180 or $2.00 lower with a few deals in the North at $184, averaging $1.00 to $2.00 lower. Boxed beef was lower with choice down $2.66 and select down $3.68. Boxed beef has been showing signs of weakening, which will have a negative impact on cattle prices. The large increase in corn futures sent feeder cattle plummeting. Futures gapped lower on the open and never looked back, moving contracts back to the lowest level since May 11. USDA will release the Cattle on Feed report Friday. The average trade estimate for on-feed numbers on June 1 is 96.8%. Placements in May at 101.7% of last year and marketings at 101.6%.