DTN Early Word Livestock Comments 07/26 06:16

DTN Early Word Livestock Comments 07/26 06:16 Cash Uncertainty Dominates Trading Activity Cattle futures traded lower while hog futures traded higher Tuesday. Cattle could not find traction as traders remained cautious over the cash potential for the week. Higher cash supported the hogs. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $222.40 +$0.12* Hogs: Higher Futures: Lower Lean Equiv: $120.22 -$4.15** *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 just could not find the support they needed to trigger the buying interest of traders Tuesday. Technically, the market is negative as there have been three days of lower highs and lower lows in futures. The greater issue seems to be the potential for cash this week. Even if cash is steady with last week, it should not be negative for the market. However, the psychological aspect can have significant implications for a time. Cattle futures were ripe for a price retracement and are now getting it. This certainly does not mean fundamentals have changed and cash prices will likely hold or move higher, but the perception of traders influences the market. Cash is not expected to trade until late in the week. Boxed beef closed higher in both categories with choice up $0.06 and select up $0.56. Feeder cattle auctions show weakness this week due to hot weather and extremely high prices.