DTN Early Word Livestock Comments 06/13 06:27

DTN Early Word Livestock Comments 06/13 06:27 Mixed Trading Until Cash Provides Direction Cash cattle did not trade Wednesday, providing no direction for traders. Futures slipped as there was little for traders to go on besides market perceptions. Hogs finally bounced after making new lows again. It may be short-lived. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.72 -$0.66* Hogs: Lower Futures: Lower Lean Equiv: $104.87 -$4.62** *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: Live cattle futures showed some strength for a time, but without any other fundamental indications futures slipped into the close. The initial bullishness of cash this week has succumbed to less optimism, much like last week. The WASDE report showed USDA estimated higher steer prices for the rest of the year. However, those prices are estimates and will change from report to report having little influence on the market as seen on Wednesday. The positive aspect of the report was that the grain supply would be sufficient at reasonable prices. Boxed beef prices were lower with choice down $0.61 and select down $1.69. Traders will be anxious to see whether this could be the beginning of a trend. Feeder cattle remain in high demand with strong prices continuing to be seen at auctions. The House Appropriations Subcommittee approved the reinstatement of the July Cattle Inventory report.