DTN Early Word Livestock Comments 07/11 06:27

DTN Early Word Livestock Comments 07/11 06:27 Further Cash Gains Expected for Hogs The cattle complex defied the strength of corn Monday, pushing higher as there is optimism cash will be no less than steady this week. Feedlots can afford to hold out at current prices. Hogs just could not keep their head above water, closing lower with August showing the most weakness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $228.07 -$2.23* Hogs: Higher Futures: Higher Lean Equiv: $115.13 +$0.01** *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 supported the cattle complex on the anticipation feedlots will hold for no less than steady money. Despite the increase of corn Monday, cattle held in positive territory. Supplies of market-ready cattle remain tight. With showlists mixed, packers may be somewhat complacent about aggressively looking for cattle. They already have some forward purchased for the week and much of the rest of the month, but still need some. This may leave them less aggressive, especially considering continued weakness of boxed beef. Choice declined $3.11 with select down $3.30 Monday. Midday boxed beef looked more promising, but that waned into the end of the day. Higher corn prices again overnight might not be able to be ignored Tuesday, along with apprehension over what the WASDE report will show and how the trade will react.