DTN Early Word Livestock Comments 07/21 06:04

DTN Early Word Livestock Comments 07/21 06:04 Report Anticipation to Influence Trade The entire livestock complex was higher early yesterday posting new contract highs for live cattle, but traders liquidated pushing the cattle complex into negative territory as the day progressed. Hogs showed very strong buying interest as demand remains strong. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.01 -$0.77* Hogs: Higher Futures: Higher Lean Equiv: $129.29 +$2.49** *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 was an interesting day for the cattle as early strength gave way to weakness. Traders did not wait for cash but decided to liquidate positions taking advantage of the new contract highs to bank some profits and prepare for the Cattle on Feed and Cattle Inventory reports today. However, with cash trade yesterday at $2.00 higher in the South and $3.50 higher for Northern dressed cattle, traders may buy back into the market today. Even with some higher cash trade yesterday, feedlots are holding for more with current offers higher. The market continues to be stretched with tight cattle supplies resulting in higher cash while at the same time demand has slowed. Boxed beef again was lower with choice down $1.03 and select down $1.25. Export sales continue to hold well with sales yesterday of 20,900 mt for the week which was up from the previous week. The Cattle on Feed report will be released after the close. Estimates 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%. The Cattle Inventory report will also be released.