DTN Early Word Livestock Comments 06/27 06:19

DTN Early Word Livestock Comments 06/27 06:19 Quarterly Hogs and Pigs Report Day Livestock futures posted strong gains across the board Wednesday. The June live cattle contract showed the greatest gain as the contract nears expiration. There is a strong chance for higher cash this week. Hog futures showed active short-covering ahead of the Hogs and Pigs report to be released Thursday afternoon. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $235.53 -$0.77* Hogs: Lower Futures: Mixed Lean Equiv: $101.37 +0.21** *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 pushed higher to move above chart resistance and closed near the highs. The strong cash trade last week and the optimism for higher cash this week fueled the rally. The June live cattle contract will go off the board Friday and adjusted to cash and the expected settlement price. Cash prices for this week have not yet been determined. Feedlots are holding for higher prices as they feel they maintain the upper hand. Beef demand has not declined seasonally but seems to have increased even at the higher prices. Boxed beef prices were lower on Wednesday with choice down $0.54 and select down $2.40. Feeder cattle moved higher along with the live cattle. The continued strength of cash cattle and tighter cattle numbers keep feeder prices higher at auctions as feedlots are aggressively purchasing feeders with lower grain prices reducing the cost of finishing them.