DTN Early Word Livestock Comments 07/19 06:14

DTN Early Word Livestock Comments 07/19 06:14 Cash Cattle Trade Unlikely Live and feeder cattle futures diverged with growing optimism over cash cattle trade and pressure on feeders due to sharply higher corn prices. Hogs were mixed on spread trading and the uncertainty of cash. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $222.44 -$0.77* Hogs: Higher Futures: Higher Lean Equiv: $119.87 -$0.03** *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 certainly remain optimistic about cash this week with no cash trading taking place yet and no solid bids or offers seen. Feedlots might be in a position where they can hold cattle for a while as weights are lighter as cattle have been pulled forward. Cash prices are very good, but with tightening numbers, they could become better. The other issue is whether demand will continue to remain strong as prices continue to increase. Boxed beef has been struggling recently with choice down $2.10 and select up $0.87 Tuesday. Bids and offers should be seen Wednesday, but cash may not trade. It will be an interesting rest of the week as traders will also be looking ahead to the Cattle on Feed and Cattle Inventory reports Friday.