DTN Early Word Livestock Comments      06/08 06:23
   A Second Case of the New World Screwworm

   Cattle futures closed higher but were well off their highs achieved during
the day. Steady cash was a bit of a disappointment. Hog futures nearly retested
the lows of earlier in the week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Lower       Live Equiv: $289.62 -$0.05*

   Hogs: Lower            Futures: Higher      Lean Equiv: $107.79 +$3.02**

   *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:

   One thing that can be said is that cattle futures are resilient. There is
little reason for futures to see much pressure based on the fundamentals. It is
also possible that the highs have been established, and the market may trade
within a range. Cash cattle traded steady last week, likely trimming the early
strength of the market on Friday. There has been some anticipation of higher
cash. Boxed beef prices were mixed, with choice up $0.04 and select down $0.35.
A second calf was confirmed to have an infection with the New World screwworm
(NWS) in Texas, within 6 miles of the first discovery. Read more here:
https://www.dtnpf.com/agriculture/web/ag/news/article/2026/06/06/second-calf-con
firmed-new-world. The screwworm does not pose any threat to the food supply,
but does increase the burden on ranchers to increase their vigilance. Even so,
consumers' perceptions may have an impact on beef demand. The Commitment of
Traders report showed the funds selling 4,435 live cattle futures contracts,
reducing their net-long position to 116,107 contracts. They added 336 long
futures positions to feeder cattle, increasing their net-long position to
11,299 contracts.