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DTN Early Word Livestock Comments 07/26 06:19

26 Jul 2022
DTN Early Word Livestock Comments 07/26 06:19 Mixed Trading Activity Expected Cattle opened substantially lower Monday, but rebounded throughout the day, closing slightly higher in contracts through April. Feeder cattle could not shake the strength of corn and closed with triple-digit losses. Hog futures showed spread unwinding, moving later contracts significantly higher. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $198.15 +$1.06* Hogs: Higher Futures: Mixed Lean Equiv: $135.94 -$1.85** *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: Cattle opened substantially lower Monday in reaction to the bearish placement number on the Cattle on Feed report. However, after the initial knee-jerk reaction was finished, futures came roaring back as the friendly cattle inventory report seemed to take the stage, becoming the focus of traders. Futures contracts through April closed higher despite higher corn futures and the potential for steady to lower cash again this week. No cash business was done Monday with packers less likely to be aggressive due to an amount of cattle already booked for the week. Boxed beef prices were higher with choice up $0.99 and select up $2.250. Feeder cattle were under pressure from higher corn futures and eliminated much of the gain on Friday. Feeders will likely be under pressure again Tuesday due to strong corn futures overnight.