DTN Early Word Livestock Comments 06/25 06:18

DTN Early Word Livestock Comments 06/25 06:18 Cattle Futures Adjust to Higher Cash Live and feeder cattle futures held up well Monday, posting gains as traders emphasized higher cash trade rather than the Cattle on Feed report numbers. Hogs found no support with new contract lows in most contracts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $235.95 +$0.67* Hogs: Steady Futures: Higher Lean Equiv: $103.68 -$1.20** *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 were slow to support the cattle market Monday as the initial pressure came from the bearish nature of the Cattle on Feed report. However, the fact that cash cattle moved sharply higher last week overrode that bearishness. Futures closed much as how it could have been expected with higher placements impacting late-year contracts while strong cash supports near-term contracts. It is doubtful the strength of cash will be repeated this week, but prices should be supported. Boxed beef was higher with choice up $0.25 and select up $1.96. The Commitments of Traders report showed funds increasing their net-long live cattle position by 2,882 contracts, carrying a net-long position of 55,963. Funds increased their long feeder cattle position by eight contracts with their net-long futures positions at 2,986.