DTN Early Word Livestock Comments 06/14 06:17

DTN Early Word Livestock Comments 06/14 06:17 Cattle Futures Should See Further Support Friday Feedlots held out and packers had to step up and pay more for the cattle they needed Thursday. Live cattle futures did an about-face from lower prices to close higher. Hog futures went in the other direction as fundamental and technical support remains elusive. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $232.18 +$0.46* Hogs: Higher Futures: Mixed Lean Equiv: $102.86 -$1.99** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 futures were under pressure for a time Thursday but turned higher once cash began trading in the country. Cattle in the South traded $1.00 higher with dressed cattle in the North trading as much as $4.00 higher. Feedlots retained the upper hand as packers needed cattle and had to pay up for them. Beef demand remains strong, keeping boxed beef prices higher. Choice cuts gained $0.71 with select cuts up $0.32. The packers do not want to pay higher cash as their margins are below a year ago and below the 3-year average, but they cannot afford not to. Feeder cattle bounced back significantly from the lows but could not quite close in positive territory in contracts through November. Strong feeder cattle prices in the country should support the market.