DTN Early Word Livestock Comments 06/24 06:17

DTN Early Word Livestock Comments 06/24 06:17 Cattle Futures Expected to Open Lower Monday Live cattle futures drifted into the close Friday as traders did not have a good handle on cash and the Cattle on Feed report was yet to be released. Cash did trade higher after the close and the report was bearish. Hogs followed a similar pattern as cash and cutouts were mixed, providing no direction. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $235.28 -$0.29* Hogs: Steady Futures: Mixed Lean Equiv: $104.88 +$1.18** *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 finished the week with strong gains. Live cattle in the South traded $3.00 to $5.00 higher with Northern dressed cattle trading $4.00 to $6.00 higher. That is an incredible jump in price as packers had to step up due to the need to maintain slaughter and meet demand. To begin Friday, beef export sales were good at 14,900 metric tons (mt), up 24% from the previous week. This provided some support, mainly to the nearby months. Cash cattle did not trade much before the close of the futures market but optimism grew over better cash. However, that optimism remained in check due to the Cattle on Feed report, and rightly so. The report was considered bearish, but there is disbelief over the level of placements. Placements in May were 104% with the average estimate at 98.3%. This was above the top of the range of 102.4%. This was very bearish but not without controversy. Many expressed disbelief placements were that high. Maybe there are more cattle out in the country than the market has given the impression there are. After all, cattle weights are significantly higher than a year ago. On-feed numbers were 100.0% of a year ago and slightly higher than the estimate of 98.9%. Marketings in May were 100%, down slightly from the estimate of 100.3%. This should result in lower futures on the open, but that may be short-lived as strong cash and traders discounting the report may overcome the bearishness. Boxed beef was lower Friday with choice down $0.48 and select down $1.29.