DTN Early Word Livestock Comments 06/16 06:13

DTN Early Word Livestock Comments 06/16 06:13 Livestock Futures May Drift Thursday Cattle posted a strong day Wednesday as cash prices jumped and a brisk slaughter pace returned. Hogs moved higher in their own right as strong cash Tuesday provided needed support. Gains were limited by lower cutouts again. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $198.14 -$0.85* Hogs: Steady Futures: Mixed Lean Equiv: $113.49 -$2.83** *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: Cash cattle trade developed with packers turning aggressive. Cattle in the South traded $2.00 higher while Northern dressed were $4.00 higher. This was a much-needed shot in the arm for traders. This eliminated the futures losses of the week and closed the chart gaps that were left on Monday. Even through the Fed increased the interest rate and inflation is still rampant, demand for beef remains. However, boxed beef has been struggling recently with choice down $1.22 and select down $1.14 on Wednesday. Further cash business will be done Thursday, but the level has been set for the rest of the week. Weekly export sales will be released and hopefully will show some better sales than we have seen recently.