DTN Early Word Livestock Comments 07/03 06:18

DTN Early Word Livestock Comments 07/03 06:18 Cattle Expected to Show Weakness The cattle complex was again the beneficiary of weak corn prices. Live cattle showed moderate gains while feeder cattle exploded higher. Hogs closed mixed with traders remaining friendly to nearby months as they had been much of the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $237.24 -$0.99* Hogs: Lower Futures: Mixed Lean Equiv: $109.54 -$0.45** *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: When USDA released the Planted Acreage report that showed corn acres at 94.1 million, corn futures plummeted. In reaction, the cattle complex found strong buying interest with feeder cattle exploding higher. New contract highs were made in December, February, and April live cattle while feeder cattle soared to new highs through the February contract. It was "Katy, bar the door!" buying in feeder cattle. Even though cash cattle traded generally $1.00 to $2.00 lower during the week with some in the North trading at $1.00 higher, the focus was on feed. The weakness of boxed beef also was forgotten for the time being with choice down $0.33 and select down $3.55 on Friday. Strong gains in cattle last week will increase the resolve of feedlots to hold for higher cash this week. No business is expected ahead of the holiday tomorrow, but feedlots may decide to hold cattle longer if higher cash is not paid. The Commitment of Traders report showed funds reducing their net long futures positions by 4,249 contracts to a net long of 107,152 futures positions as of June 27th. Feeder cattle long positions were trimmed by 1,061 contracts to a net long of 14,634 contracts.