DTN Early Word Livestock Comments 07/24 06:22

DTN Early Word Livestock Comments 07/24 06:22 Selling Pressure in Cattle Futures Expected Higher cash cattle trade last week was not enough to overcome the uncertainty of the Cattle on Feed report -- and rightly so. Placements in June were 3% above a year ago, which was also above the highest trade expectations. Hog futures trimmed some of the gains of Thursday as packer interest waned through the end of the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $221.53 +$0.52* Hogs: Higher Futures: Mixed Lean Equiv: $122.41 +0.12** *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 traded higher last week with Southern live cattle averaging $2.00 higher and Northern dressed cattle $3.50 higher. The market already had that factored in, leaving traders turning their attention to the Cattle on Feed report. The report many times carries a surprise and this one was no exception. The bearish category was placements in June at 3% above a year ago. That number was even above the highest trade estimate. This would put pressure on futures Monday. On top of that, there will be a strong corn market as hot weather moves into the Midwest this week with areas lacking moisture. On feed numbers on July 1 were 2% below a year ago with marketings 5% below a year ago. Both of these were in line with trade expectations. The Cattle Inventory report was in line with expectations at 3% less than a year ago. Both feeder cattle and live cattle futures are expected to open lower due to the report and strong corn futures. The Commitments of Traders report showed funds selling 3,330 futures contracts, trimming their net-long positions to 113,815 futures. Feeder cattle showed an increase of 252 long positions to 16,013 net-long positions.