DTN Early Word Livestock Comments 06/05 06:12

DTN Early Word Livestock Comments 06/05 06:12 Further Pressure on Hog Futures Expected Wednesday Early strength in cattle futures Tuesday waned as traders were disappointed and buying dried up. There is hesitancy over the potential for higher cash. Hogs fell apart, gapping lower and breaking technical support. Slower demand is becoming a reality. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $232.35 +$0.79* Hogs: Higher Futures: Higher Lean Equiv: $106.60 -$0.67** *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 tried to make a run higher Tuesday, but failed as buying did not follow through. Traders want the market to move higher due to tighter supplies and the potential to remain that way for the entire year. However, the buying Tuesday was temporary and the day ended with minor losses. Cash cattle did not trade, as it seldom does during the first-half of the week. The positive aspect is boxed beef continued higher for the second day. Choice gained $1.28 with select up $0.77. Traders seem concerned the pattern of last week may again follow this week. Cattle weights seasonally increase in the summer and with already significantly higher weights than last year, price potential may be limited.