DTN Early Word Livestock Comments 06/17 06:16

DTN Early Word Livestock Comments 06/17 06:16 Aggressive Buying of Futures Expected to Continue Monday Traders aggressively bought futures after higher cash for the week was confirmed by strong trading activity Friday. The June contract had to keep up with cash as it moved closer to settlement. Hog futures reversed as short-covering ahead of the weekend erupted after first making new contract lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $233.97 +$1.79* Hogs: Higher Futures: Higher Lean Equiv: $107.24 +$4.38** *Based on the forula 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 traders had been waiting for something to support the market and they got it Friday as cash traded higher. Thursday showed light trade at higher prices and was confirmed Friday with Southern cattle trading $1.00 higher and Northern dressed trading $4.00 higher. This was the catalyst needed for traders to buy into the market. The strength began on the open with futures gapping higher and they never looked back. Along with higher cash, boxed beef prices were also strong with choice up $1.58 and select up $4.56. Demand remains strong with packers needing to purchase cattle and maintain a strong slaughter pace. The Commitments of Traders report showed funds selling 3,571 live cattle futures contracts with their net-long positions totaling 53,071 contracts. Funds were net sellers of 358 feeder cattle futures contracts with their net-long positions at 2,978 contracts.