DTN Early Word Livestock Comments 07/05 06:16

DTN Early Word Livestock Comments 07/05 06:16 Mixed Trade to Begin Day Live cattle futures may trade mixed to begin Wednesday as traders may wait until there is a better idea as to the direction of cash. Further weakness of corn may support feeder cattle futures again. Hogs continued to see strength in nearby contracts and pressure in deferred contracts. Strong cash and cutouts should provide support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $237.69 +$0.45* Hogs: Higher Futures: Higher Lean Equiv: $115.09 +$5.55** *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 futures seem poised to move higher, but support will need to be seen from at least steady cash. The August contract carries a discount to cash but also had nearly two months to figure it out. Packers should be more aggressive to purchase cattle as they held back somewhat last week. Feedlots will use the recent decline of corn price as leverage to indicate they may hold out another week if they do not see higher cash. Boxed beef prices closed higher with choice up $0.62 and select up $0.67. Feeder cattle pushed to new contract highs in September and later contracts. Corn prices will again provide direction to trade.