DTN Early Word Livestock Comments 07/06 06:17

DTN Early Word Livestock Comments 07/06 06:17 Traders Wait for Cash Traders were uncertain what to do with the cattle market as the price swing of corn and no indication of potential cash trade left them less willing to support the market. Hogs showed incredible strength in nearby contracts on continued strong cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $234.60 -$3.09* Hogs: Higher Futures: Higher Lean Equiv: $116.29 +$1.20** *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: Traders were a bit disappointed packers were not more aggressive Wednesday due to a lighter amount of cattle purchased last week. Now it is Thursday and solid bids and offers still have not been posted. The weakness of boxed beef may keep packers holding the line as continued weakness indicates softer demand. Boxed beef Wednesday showed choice down $5.56 and select down $1.61. Yes, cattle supply continues to remain tight, but it may not be quite as concerning if demand is slower. It is anticipated cash will trade Thursday as packers need to accomplish business. Some of the price expectations have been trimmed with steady cash likely.