DTN Early Word Livestock Comments 06/04 06:12

DTN Early Word Livestock Comments 06/04 06:12 Livestock Traders Will Remain Cautious Live cattle futures were able to come back from the losses and close slightly higher. Feeder cattle futures closed mixed with uncertainty over price potential. Hogs tried to muster strength but could not hold closing near the day's lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.56 +$1.55* Hogs: Higher Futures: Higher Lean Equiv: $107.27 -$1.82** *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 futures closed with minor strength but not until lower lows were made for the fourth consecutive day. Traders are still uncertain about the news stories of last week and the longer-term effects. The strength of boxed beef was supportive, with choice cuts gaining $2.40 and select cuts up $1.99. However, that may not be enough to cause the packers to become more aggressive this week. Last week, they were able to purchase some cattle ahead, putting them in a better bargaining position. If demand holds this week, they may need to step up and buy more aggressively. Feeder cattle prices are becoming more variable at auctions as some buyers are holding back due to the high prices and the concern over live cattle prices in the future.