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DTN Early Word Livestock Comments      06/23 06:32
   Higher Prices for Cash Cattle

   Livestock futures finally closed higher in all categories Tuesday. Cattle
were spurred higher due to the higher cash prices in the country. Hogs bounced
technically but were supported by higher cash. A record one-day decline of pork
cutout price over the past nine years does not bode well for the market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher       Futures: Higher       Live Equiv:    $227.99 -$3.06*

   Hogs: Steady       Futures: Mixed        Lean Equiv:  $114.53 -$12.93**

   * 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


   The cattle complex received a shot in the arm Tuesday due to lower grain
futures and higher cash bids. There were some early sales about $1.00 higher in
Texas, followed by some cattle trading $3.00 to $4.00 higher in Kansas. Cattle
trading $1.00 higher was no real surprise, but bids and trades higher than that
were. This was interesting considering July 4 is just 1 1/2 weeks away, a time
of year after which beef demand seasonally decreases. However, current demand
for beef remains strong and may not follow seasonality. Feedlots may be in a
better position to negotiate higher prices with average weights indicating they
are more current with supply. This is a change that has not been seen for a
while. Boxed beef continued to plummet with choice cuts down $5.45 and select
cuts down $1.71. The May Cold Storage report showed beef inventory decreased 8%
from April and was 1% below May 2020. The Commitment of Traders report, that
had been delayed one day, showed funds as net buyers of 10,633 futures
contracts increasing their total net long positions to 63,573 contracts.
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