DTN Early Word Livestock Comments 06/21 06:19

DTN Early Word Livestock Comments 06/21 06:19 Optimism For Week Ahead Live cattle had a moderate close Friday as there was little fundamental news for the day. Cash business had been done and futures had already compensated for the strong gains for the week. Hogs put in another strong day as cutouts increased significantly again. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $197.51 -$0.12* Hogs: Steady Futures: Higher Lean Equiv: $122.65 +$3.64** *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 closed higher Friday, moving into the three-day weekend. The gains were moderate due to much of the cash business having been taken care of at a surprising $4.00 higher than the previous week for both the North and South. Feedlots have their sights set on higher cash this week as packers should be looking for cattle aggressively again. Slaughter pace has been strong, leaving packers with less bargaining power, along with looking at a tighter supply. The other side of the market is the concern over continued strong demand. Boxed beef prices were mixed Friday with choice down $0.90 and select up $1.15. However, boxed beef prices were lower for the week. Feeder cattle posted double-digit gains on stronger buyer interest at auctions and weakness shown in corn. Substantial weakness in grains overnight should provide further support.