DTN Early Word Livestock Comments 08/02 07:27

DTN Early Word Livestock Comments 08/02 07:27 Uncertainty Dominates Trade The cattle complex had a strong Tuesday with futures higher. The sideways-to-lower trend may be changing, but that will depend on cash cattle trade this week. Hogs opened higher Tuesday due to cash and cutout strength Monday but could not hold the gains, ending with a mixed close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.92 +$2.53* Hogs: Higher Futures: Higher Lean Equiv: $122.48 -$1.95** *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: Traders decided the cattle supply situation and the strong potential for packers to bid higher to obtain cattle this week warranted higher prices. A handful of cattle traded in Nebraska at $294, steady with last week. The amount was so small it does not set the stage for other trade. It would not be surprising for a greater volume of cash cattle to trade Wednesday as the past two weeks saw trade pushed to Friday. Packers may want to take care of business a little earlier. Boxed beef prices were higher with choice up $4.32 and select up $1.87. The gains Tuesday may have turned the trend back up from the steady-to-lower trend that had developed.