DTN Early Word Livestock Comments 07/25 06:17

DTN Early Word Livestock Comments 07/25 06:17 Livestock Futures May Find Support Pressure came from two fronts in the cattle market Monday. The placement number on the Cattle of Feed report and strong corn futures. Overnight corn futures are lower, likely increasing buying interest. Hogs could not hold up under the strong grain prices, even though cash and cutouts were higher. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $222.28 +$0.75* Hogs: Higher Futures: Higher Lean Equiv: $124.37 +1.96** *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: Cattle tried to rally after initially opening lower but succumbed to selling pressure at midmorning as strong corn futures exhibited pressure as traders traded the correlation. Packers have reduced slaughter in the attempt to back up supplies of cattle somewhat and hopefully raise boxed beef prices and improve margins. Feedlots have played hardball the past few weeks and have benefited from it. Cattle supplies are tight and will not change anytime soon. Business is not expected to be accomplished until late in the week. Boxed beef prices were higher in both categories with choice up $1.42 and select up $0.26. USDA will release the June Cold Storage report Tuesday, showing the amount of beef in storage.