DTN Early Word Livestock Comments 06/14 06:19

DTN Early Word Livestock Comments 06/14 06:19 Beef Demand Uncertain Cattle put in a wild Monday with futures gapping lower on the open and plummeting substantially lower before traders realized the weakness might have been overdone. Economic concerns came to the forefront. Hogs performed well after initial pressure, closing higher for the day on cutout strength. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $199.67 -$0.69* Hogs: Higher Futures: Higher Lean Equiv: $119.03 +$2.22** *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: The pressure on the stock market sent cattle contracts spiraling lower right from the start. Chart gaps were left and never revisited as traders were concerned over inflation and what a sharper rise in interest rates might do to demand. The Federal Reserve is expected to raise interest rates .75 of a point. Futures plummeted, but thankfully did not remain at the lows as traders deemed the sell-off as overdone. Nevertheless, this was an unexpected blow to the market as stronger cash last week and the expectations for stronger cash this week may have waned a bit. Packers are expected to need cattle to fill the brisk slaughter pace, but lower boxed beef and lower futures might leave them less aggressive. Boxed beef was lower with choice down $0.78 and select down $1.44. The Commitment of Traders report showed funds as net buyers of 9,265 contracts of live cattle with their net-long position now at 21,350 contracts.