DTN Early Word Livestock Comments 06/30 06:20

DTN Early Word Livestock Comments 06/30 06:20 Spread Unwinding Expected in Hogs Cattle extended gains on weaker corn prices. Cash activity so far has been light and lower than last week, which may limit further upside potential. Spread trading continued in hog futures with July and August reaching back near the highs of last week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $238.23 +$0.18* Hogs: Lower Futures: Mixed Lean Equiv: $109.99 +$3.82** *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 benefited from lower corn prices again. Strength did not stem from higher cash trade as most of what has taken place has been $1.00 to $2.00 lower. Cash activity had been light as both packers and feedlots have not been aggressive to accomplish business. It is uncertain whether either side will be more willing to accomplish business Friday or if feedlots will be content to hold over another week. Packers are preparing for a holiday week and seem to have sufficient cattle on hand to fulfill their needs. Boxed beef prices were higher in both categories with choice up $0.15 and select up $0.50. Weekly export sales were respectable but lower than the previous week at 12,000 metric tons (mt). Higher corn prices overnight may temper the recent rally as the cattle complex has been moving accordingly. Friday is the last day for the June live cattle contract. August will take over as front month next week. The grain Quarterly Stocks report and Planted Acreage report may be the focus of the day.