DTN Early Word Livestock Comments 06/29 06:22

DTN Early Word Livestock Comments 06/29 06:22 Further Gains in Hogs Expected Cattle futures were the victims of higher grain prices and further steep losses of boxed beef prices. Cash trading has yet to surface. Hogs did an about face Monday with some follow-through short-covering expected Tuesday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $217.69 -3.99* Hogs: Steady Futures: Higher Lean Equiv: $121.89 +5.09** * 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: Feeder cattle were under pressure due to the significant increase of grain prices. Live cattle were the victims of some spread trading as nearby months were lower while contracts in 2022 were higher. The influence of the Cattle on Feed report was evident during the day, but the end result did not indicate the market was ready to trend higher. Wednesday is the last trading day for the June live cattle contract, which may limit trading activity until then. There was no cash activity Monday or even an indication of bids or offers. It will be interesting to see what type of prices and when trading activity will take place due to the upcoming holiday as plants may vary their down times on Friday or Monday with no activity on Saturday. Going through another week similar to last week with limited cash activity will not be acceptable to packers as plants need to keep plants running and demand satisfied. Boxed beef prices plummeted again Monday with choice cuts down $7.13 and select cuts down $2.22. The Commitment of Traders report showed funds were net buyers of 5,442 contracts bringing their total net-long positions to 69,015 contracts.