DTN Early Word Livestock Comments 07/31 06:16

DTN Early Word Livestock Comments 07/31 06:16 Interesting Week Ahead Cash cattle trading activity was very limited last week. Some cattle sold Friday $1.00 lower than the previous week. Feedlots were not anxious to sell and packers were not forced to buy. Hogs had a strong Friday as traders positioned to close out the month. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $221.44 -$0.79* Hogs: Lower Futures: Higher Lean Equiv: $120.69 -$1.20** *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 week for cattle with the last half of the week showing sideways consolidation in live cattle futures. Traders waited for cash direction, but little was to be seen. Very light trade took place $1.00 lower, which will make for an interesting week. Packers had sufficient cattle purchased ahead and the hot weather last week left them less aggressive in the market. It is likely packers will need cattle this week and may need to pay up for them if feedlots continue to hold out. Packers will not want to pay up as boxed beef prices continue to weaken. Choice was down $0.86 and select down $2.22 on Friday. Packer margins are substantially below last year and the three-year average. Lower corn futures might provide some support for feeder cattle today. The Commitment of Traders report showed funds reducing their long position by 7,200 contracts, bringing their net-long position to 106,615. Funds sold 1,801 contracts of feeder cattle, moving their net-long position to 14,212 futures contracts.