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DTN Early Word Livestock Comments      06/15 06:22
   Cattle May Run Out of Steam

   Cattle and hogs again moved in opposite directions Monday. Cattle were the
beneficiaries of lower grain prices; hogs struggled under lower cash and lower
cutouts. Cattle futures broke through technical price resistance while hogs
broke below support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady     Futures: Mixed        Live Equiv:    $242.43 -$1.41*

   Hogs: Steady       Futures: Lower       Lean Equiv:    $135.40 -$3.86**

   * 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:

   Traders took advantage of substantially lower grain prices to push feeder
cattle futures higher Monday. The strength of feeder cattle pulled live cattle
higher. That may carry over Tuesday to some extent as grain prices were again
lower overnight. Traders were a little more hesitant in live cattle due to no
indication yet as to cash prices this week. The country was void of bids or
offers as most were likely focused on the substantial drop in grain prices. The
trade seems to think cash will be no less than steady but will be cautious due
to the apparent top in boxed beef. Choice cuts declined $2.09 with select cuts
down $1.80. Feedlots seem to be current with marketings, which may allow them
to hold back a bit this week in anticipation of packers needing cattle, which
may cause packers to pay no worse than steady cash. The Commitment of Traders
report showed funds purchasing 2,740 -- increasing their net long to 52,940
contracts.
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