DTN Early Word Livestock Comments 06/17 06:19

DTN Early Word Livestock Comments 06/17 06:19 Livestock Futures Should Find Support Even though there was a $2.00 bump higher in cash trade for Southern cattle, live cattle struggled as traders felt higher cash was already priced in. Lower feeder cattle provided an anchor on the ability for live cattle to move higher. Hog futures came to life as the day progressed and cutouts gained. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $197.63 -$0.51* Hogs: Steady Futures: Higher Lean Equiv: $119.01 +$5.57** *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 treaded water Thursday, trading in a limited range even though cash cattle in the South traded as much as another $2.00 higher, adding to the earlier gain of $2.00 already this week. Packers needed cattle and had to raise bids to get them. Packers and traders are assessing the impact the heat wave is having on cattle. There are reports of significant death losses in some areas with Kansas primarily hitting the newswires. Not only are cattle being lost, but the heat is hindering performance. This is a bullish combination. However, concern over consumer demand is also being assessed with boxed beef prices down again Thursday. Choice declined $1.06 with select down $0.30. Weaker boxed beef has been the pattern this week. Weekly export sales provided little support with sales down 2% from the previous week.