DTN Early Word Livestock Comments 06/27 06:10

DTN Early Word Livestock Comments 06/27 06:10 Lower Corn to Influence Cattle Futures Cattle struggled much of Monday, ending mixed as the impact of bearish placements on the Cattle on Feed report was digested. The uncertainty of cash weighed on the market as well. Hogs closed higher as cash and cutouts continue to perform well. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Higher Live Equiv: $241.11 -$0.44* Hogs: Higher Futures: Mixed Lean Equiv: $106.64 +$2.19** *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 held up well despite the bearish implications of placements in the Cattle on Feed report. Even though more cattle may be available over time, the here and now continues with tight cattle numbers. However, recently lower cash and decreasing boxed beef prices may temper further upside gains for the near term. Packers are expected to reduce bids this week, using the trend of lower boxed beef and the higher placement number as leverage. Boxed beef prices declined Monday with choice down $0.97 and select down $0.29. No cash business is expected to take place Tuesday. Feeder cattle were mixed Monday with closer months lower and later months higher. Futures are expected to be higher Tuesday due to the decline of corn price overnight despite a 5% decline of crop ratings. There remains strong demand for feeder cattle at auctions with steady to higher prices still being paid.