DTN Early Word Livestock Comments 06/03 06:10

DTN Early Word Livestock Comments 06/03 06:10 Cattle Futures May See Further Pressure Cattle futures could not recover on Friday as lower export sales and cash weakness did not support the market. Hogs were able to close higher but not by much. Support stemmed from strong pork export sales, but could not trigger short covering into the weekend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.01 -$0.59* Hogs: Higher Futures: Higher Lean Equiv: $109.09 +$1.29** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 struggled during the second half of the week after China announced the ban on feed from a processing plant in Colorado. There is uncertainty over the duration of this ban and what further testing might show. If other cattle producers use this feed additive there is concern more positive tests showing up. Cash cattle traded lower with Southern cattle trading at $1.00 lower and Northern dressed cattle trading at $3.00 lower. Weekly export sales were not supportive with 15,700 mt sold, down 27% from the previous week. Boxed beef was lower in both categories with choice down $0.84 and select down $0.81. The Commitment of Trader's report showed funds increasing their live cattle long position by 12,199 futures contracts taking them net long 61,762 contracts. They increased their feeder cattle long positions by 2,492 contracts taking them to a net long 6,696 contracts.