DTN Early Word Livestock Comments 06/15 06:18

DTN Early Word Livestock Comments 06/15 06:18 Livestock Futures May Find Support Live cattle were able to close higher Tuesday as some initial light cash trading activity points to higher cash. Feeder cattle closed mixed as it struggled technically. Hogs had pressure on the nearby months with July holding a discount to expiring June. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $198.99 -$0.68* Hogs: Steady Futures: Mixed Lean Equiv: $116.32 -$2.71** *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 were cautiously higher in August and later contracts. June posted a triple-digit gain as it was caught in the downdraft Monday and needed to correct as cash remains higher. Some light cash trade Tuesday points to higher prices as packers may need to be somewhat aggressive again. However, if slaughter is slowing and cutouts struggling, the increase of cash may be less than hoped. Feedlots will be the deciding factor as they weigh the cost of holding cattle another week. Cutouts declined Tuesday with choice down $1.10 and select down $0.63. Concern over beef demand continues to roll around in the market due to the impact of higher prices in the grocery store due to inflation. The Federal Reserve will announce a rate decision Wednesday with expectations for a 75-basis-point rate hike in the attempt to cool inflation.