DTN Early Word Livestock Comments 06/07 06:18

DTN Early Word Livestock Comments 06/07 06:18 Hopes For Higher Cash May Provide Support The cattle complex struggled due to the lack of supportive news other than higher cutouts. With no indication of cash direction, higher corn prices put pressure on the market. Hogs showed promise of higher cutouts early but faded as the day progressed, keeping the market under pressure. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $199.91 +$1.41* Hogs: Higher Futures: Mixed Lean Equiv: $116.44 -$0.59** *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: It was not expected there would be any cattle trade yesterday as Monday is generally a day of distributing showlists and assessing fundamental market potential. Futures weakness from higher corn did not provide solid support for feedlots to set their resolve for higher cash this week. Initial expectations were for steady to lower cash, but with boxed beef higher, that may have changed, increasing the potential for steady to higher cash. Choice cuts increased $2.32 while select cuts increased $1.07. Packers had been contracted ahead over the past weeks but holding back to purchase at lower prices has brought them more current. Feedlots might be in a little better bargaining position. The Commitment of Traders report showed funds selling 4,229 contracts, bringing their net-long positions to just 12,085.