DTN Early Word Livestock Comments 07/13 06:22

DTN Early Word Livestock Comments 07/13 06:22 Mixed Trading Expected Wednesday was a day with similar price movement as June 6 with strong early trade and new contract highs, only to fall apart resulting in about a $4.00 price swing in live cattle. Hogs followed a similar pattern, but not quite as dramatic. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $226.42 -$0.39* Hogs: Higher Futures: Higher Lean Equiv: $117.84 -$1.33** *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: Cash cattle trade did not develop sufficiently to provide a sense of solid direction. Some light trade developed late in the day with Kansas and Texas posting $178. Dressed sales in Iowa averaged $291 for steers and $287 for heifers. More cash activity is expected Thursday, but the reversal of cattle futures Wednesday may reduce some of the optimism for the week. A price movement very similar to Wednesday took place on June 6, resulting in lower trade for a period before prices found support and pushed to new highs. Now the market is higher than that level while cash is actually trading lower; it is questionable how much higher futures will move at the present time. It is ironic that about the time the WASDE report was released, showing some supportive numbers for beef, the market turned and fell. Lower corn prices could not even provide support for feeder cattle. Boxed beef was mixed Wednesday with choice down $1.14 and select up $0.86.