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DTN Early Word Livestock Comments 06/12 06:14

12 Jun 2024
DTN Early Word Livestock Comments 06/12 06:14 Market May Drift, Awaiting Cash Activity Some of the gains in cattle futures from Monday were eliminated Tuesday. Mixed boxed beef prices may keep futures mixed Wednesday and the market sideways. Hogs fell apart Tuesday with some contracts setting new contract lows and others reaching previous contract lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.38 +$0.36* Hogs: Higher Futures: Higher Lean Equiv: $109.49 +$3.22** *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: Traders did not have a specific direction in the market Tuesday, resulting in futures drifting lower. There is anticipation for higher cash trade but it seems traders may wait for confirmation before choosing a direction. Boxed beef prices this week have been mixed, possibly indicating demand may be slowing slightly. Choice cuts were up $0.79 with select down $0.42. No bids or offers have been posted and none had been expected. Nothing usually takes place until midweek. Even if buying by the packers last week seemed light, they may not be aggressive if they see an indication of demand beginning to slow. Feeder cattle futures pushed higher early but ran out of aggressive buyer interest as the day progressed. Auction prices are variable, but remain strong.