DTN Early Word Livestock Comments 06/21 06:16

DTN Early Word Livestock Comments 06/21 06:16 Traders Position Ahead of Cattle on Feed Report Traders seem to be focused on the Cattle on Feed report to be released after the close Friday. Cash has not been established, but the few that traded may indicate packers need to pay more. Hog futures fell apart as cash remains weak and cutouts are variable. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $235.57 +$1.31* Hogs: Higher Futures: Mixed Lean Equiv: $103.70 +$0.18** *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: Cash cattle seldom trade before Friday when there is a Cattle on Feed report and this week has been no exception. A few were traded Wednesday, but nothing to indicate where the majority will trade. Without cash to provide direction, the focus was on positioning ahead of the Cattle on Feed report to be released Friday afternoon. The average estimate for on feed on June 1 is 98.9% of a year ago. The range of estimates is 98.3% to 99.4%. Cattle placements in May are estimated at 98.3% with a range of 95% to 102.4%. Marketings in May are estimated at 100.3% with estimates ranging from 99.3% to 101.2%. This shows the uncertainty of traders for the placement number due to the wide range. Boxed beef was higher on Thursday with choice up $2.17 and select up $1.14.