DTN Early Word Livestock Comments 06/23 06:17

DTN Early Word Livestock Comments 06/23 06:17 Traders Look Ahead to Cattle on Feed Report The cattle complex found reason to rally in the weakness of corn. Traders were quick to buy into the market after the pressure of the last two weeks. Hogs saw some technical selling pressure as futures neared chart resistance and the market being overbought. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $242.278 -$0.02* Hogs: Lower Futures: Mixed Lean Equiv: $103.59 +$0.42** *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: Cattle found an outside market reason for a rally after being under pressure for the past two weeks. The weakness of corn provided the catalyst despite lower cash trade. Corn is significantly lower overnight again, which could provide further support if Thursday's pattern is followed. However, with cash trading as much as $6.00 lower for dressed cattle and $2.00 lower for live cattle, there might be some hesitancy by traders to get too excited over cheaper corn. Along with that, the Cattle on Feed report will be released Friday afternoon. 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%. Traders may be a bit cautious ahead of the report. Boxed beef prices were mixed Thursday with choice up $0.22 and select down $0.45.