DTN Early Word Livestock Comments 06/09 11:42

DTN Early Word Livestock Comments 06/09 11:42 Follow-Through Trading Anticipated Thursday The unexpected happened in cattle with cash jumping as much as $4.00 Wednesday. This caused the rally in live cattle futures, bringing feeder cattle contracts along with it. Hogs tried to gain ground earlier in the day but succumbed to pressure into the close as cutouts fell apart. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $200.26 +$0.12* Hogs: Lower Futures: Mixed Lean Equiv: $112.12 -$3.36** *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: Live cattle opened moderately higher with June, August and December leaving a minor gap. The market then took off as word trickled in that cash was trading higher. Southern cattle were seeing $1.00 higher trade while dressed cattle in the North were $3.00 to $4.00 higher. This caught the trade by surprise, resulting in aggressive buying of futures. The pace of slaughter has been brisk, and the number of cattle packers had purchased ahead in May dwindled rapidly. Feedlots were the winners with cash trade setting the stage for the rest of the week. However, there is growing concern over the continued rise of fuel prices and the impact that will have on beef demand. Boxed beef prices were mixed with choice up $0.32 and select down $0.15. Weekly export sales will be released Thursday morning.