DTN Early Word Livestock Comments 06/30 06:36

DTN Early Word Livestock Comments 06/30 06:36 USDA Reports Expected to Influence Trade Cattle futures may trade with limited price movement as traders will focus on the results of the Acreage and Quarterly Stocks reports due at 11:00 a.m. CT. The results may have an influence on cash cattle activity and feeder cattle futures. Hog futures may continue to rebound from an oversold status despite the weakness of cash. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $214.42 -3.27* Hogs: Lower Futures: Mixed Lean Equiv: $120.98 -0.91** * 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 closed mixed Wednesday in a somewhat uneventful trading day. June live cattle will finish their final trading day, moving August to the spot-month position. This is not expected to create any unusual volatility as the market will remain close to cash. August is trading at a slight discount, but it has two months to accomplish the task of anticipating where cash will be and then settling to it. The limited cash activity that has developed does indicate that cash prices might be higher. It has been a bit surprising that more cash activity has not surfaced given the low volume last week and the need to purchase cattle. Feedlots seem to have the upper hand at the present time and may hold for at least a couple dollars higher. Packers are keeping an eye on plummeting boxed beef prices and what it will take to meet demand. Choice cuts fell $5.09 with selects cuts down $3.56. Packer margins remain very profitable.