DTN Early Word Livestock Comments 07/20 06:22

DTN Early Word Livestock Comments 07/20 06:22 Packers and Feedlots Continue the Standoff Live cattle futures were able to eke out a new high again yesterday and anticipation grows over cash trade. Feedlots and packers remain at a standoff. Differed hog futures just cannot find support as late-year demand is uncertain when Prop 12 nears full implementation. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.78 -$0.66* Hogs: Higher Futures: Higher Lean Equiv: $119.80 -$0.07** *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: Live cattle futures have held strong this week as traders anticipate higher cash trade. Packers have some cattle purchased, but it is doubtful they would be able to end another week with only limited purchases. There have not been solid bids or offers posted as we are moving into the second half of the week. Packers have been slowing slaughter in an effort to reduce the purchases they need to make and improve margins. However, even with that, boxed beef continues to struggle with choice down $1.09 and select down $0.65. The cattle reports will not take place until after the close of futures trading on Friday so there will be no influence coming from them until Monday. Weekly export sales today are not likely to have much influence but are more mainly just information. Estimates for the Cattle on Feed report are for July 1 on-feed to be 97.6% with a range of 97.0%- 98.9%. Placements in June are estimated at 98.1% with a range of 96.2%- 102.7%. Marketings in June is estimated at 95.5% with a range of 95.0%- 96.0%.