DTN Early Word Livestock Comments 07/17 06:21

DTN Early Word Livestock Comments 07/17 06:21 Volatile Week Possible for Cattle It certainly was an interesting week with live cattle futures ending with new contract high closes. Limited cash cattle trade took place during the week with this week potentially being explosive. Hogs flipped back and forth with limited direction, even though cutouts remain strong. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.98 -$1.24* Hogs: Higher Futures: Higher Lean Equiv: $122.74 +4.66** *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: It certainly was an interesting week with feedlots and packers holding out for the prices they wanted but did not get. Feedlots passed on packer bids and packers did not want to aggressively move up to purchase cattle. Business was done on a limited basis with much of the trading about $1.00 higher. Live trade in the North was about $185 with dressed deals from $290-$292. There is going to be a lot of pent-up energy this week with the necessity of doing business. Feedlots held their ground and may raise their offers, anticipating packers are short-bought and will need to be aggressive. Boxed beef was lower again with choice down $0.97 and select down $3.37. Live cattle futures posted new contract high closes in contracts through April. Feeder cattle were pulled along despite the strength of corn with higher live prices keeping buyers of feeder cattle at auctions aggressive. The Commitment of Traders report showed funds adding 4,988 futures contracts, bringing their net-long futures positions to 117,145. Funds reduced their futures positions by 580 contracts to a net-long position of 15,761 contracts.