DTN Early Word Livestock Comments 06/28 06:21

DTN Early Word Livestock Comments 06/28 06:21 Feeder Cattle May See Further Support The cattle complex reacted to the weakness of corn futures with feeder cattle showing substantial gains, opening higher and never looking back. Hogs were mixed with spread trading evident. Fundamentals remain supportive to the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $239.09 -$2.02* Hogs: Higher Futures: Higher Lean Equiv: $107.25 +$0.61** *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: There was light cash cattle trade in Kansas at $178 with some in Texas at $178.50. The volume traded was too light to indicate whether this sets the stage for cash the rest of the week. Packers are going to use boxed beef weakness and seasonal fundamentals to their advantage. Boxed beef prices were lower again Tuesday with choice down $3.81 and select down $1.24. Feedlots might be willing to pass on lower bids due to potential further weakness of corn prices. The market digested the Cattle on Feed report and, so far, viewed it of little consequence due to lighter cattle supplies throughout the country. Feeder cattle gapped open Tuesday and never looked back. This leaves the island bottom intact, providing more confidence to bullish technical traders. Buyers continue to look for feeder cattle with strong prices reported at auctions.