DTN Early Word Livestock Comments      06/24 06:22
   Hog Futures May Remain Sideways Ahead of Hogs & Pigs Report

   Cattle traders were torn between a friendly Cattle on Feed report and cash
weakness last week. The uncertainty of Monday may continue until cash trade
develops. Hog futures closed at new contract highs Monday, keeping the uptrend
intact

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower            Futures: Higher      Live Equiv: $285.30 +$1.16*

   Hogs: Higher             Futures: Mixed      Lean Equiv: $128.64 +$0.64**

   *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:

   Feeder cattle futures followed the direction of the Cattle on Feed report,
closing higher Monday. Live cattle traders were not convinced the market is in
a position to see much upside strength for now, as lower cash last week and the
anticipation of lower cash this week is evidently on traders' minds. Packers
may have finally positioned themselves so they do not need to bid aggressively
to purchase cattle. They had purchased quite a few cattle ahead for deferred
delivery, which puts them in a position to be less aggressive in their bid for
cattle. Boxed beef prices were mixed, with choice down $0.28 while select
soared $6.15. Feeder cattle closed higher, but futures lacked commitment.
Feeder cattle prices in the country seem to be wavering and potentially near a
threshold. The Commitments of Traders report showed fund traders as net sellers
of 1,423 contracts in live cattle, reducing their net-long futures position to
130,305. They reduced their long position in feeder cattle by 31 contracts, to
a net-long position of 34,593.