DTN Early Word Livestock Comments 07/12 06:22

DTN Early Word Livestock Comments 07/12 06:22 Mixed Trade Ahead of WASDE Report The livestock complex was higher Tuesday with anticipation of nothing worse than steady cash this week and the prospect of tighter cattle supplies remaining for a period with strong demand for feeders. Hogs rallied on strong demand, higher cash, and impressive cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $226.81 -$1.26* Hogs: Higher Futures: Higher Lean Equiv: $119.17 +$4.04** *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 continued to build strength throughout Tuesday as the discount to cash was reduced. A lot can happen prior to the end of August, but optimism remains for strong cash. No cash cattle were traded Tuesday, and limited trade is expected Wednesday. Some offers were floated Tuesday in the South higher than last week as usual. Futures trading may be subdued ahead of the WASDE report this morning as traders wait for the impact it might have on grain prices. USDA will release estimates for beef production and average prices for this year and next as well which may have some influence. Boxed beef continued to struggle under pressure with choice down $1.67 and select down. $2.09. Lower boxed beef has had little impact on live cattle futures as new contract highs were again made Tuesday. Strong demand for feeder cattle continues at auctions.