DTN Early Word Livestock Comments 06/25 06:21

DTN Early Word Livestock Comments 06/25 06:21 Hog Report Behind, Cattle Report Ahead Cattle found some stability Thursday, which may continue Friday as the Cattle on Feed report will be released after the close of the market. Hog futures have yet to uncover solid support, but the end of the week could provide some short covering. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.08 -$2.14* Hogs: Lower Futures: Mixed Lean Equiv: $119.69 +$5.17** * based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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 futures were able to close higher in all contracts with the exception of August. There was little to get excited about due to limited cash trading. It certainly does not seem as if cash will be higher than the first indications of the week. Much more business should be done Friday as packers need to purchase cattle. Whether they will need to bid up to get them is the question that will be answered today. Boxed beef finally slowed its descent, ending mixed Thursday with choice cuts down $4.63 and select cuts up $0.73. Export sales were respectable with an increase of 31% over the previous week. China was the third largest buyer. Futures trading might be somewhat uneventful Friday as traders will look ahead to the Cattle on Feed report to be released this afternoon at 2 p.m. CDT. The average estimate for cattle on feed is for an increase of 0.7% from a year ago. Placements are expected to show a decline of 4.6% from a year ago. Marketings are estimated to show an increase of 23.6% from May 2020. The numbers will be skewed due to the disruptions last year, but the trade will react to how the actual numbers will fall in relation to the estimates.