DTN Early Word Livestock Comments 07/01 06:24

DTN Early Word Livestock Comments 07/01 06:24 The Holiday Week May See Choppy Trade Cattle futures closed under pressure Friday as cash cattle did not trade before the close of the market. Traders were uncertain of the final tally for cash trade. Hogs found support as the market may have finally found a bottom. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $237.53 +$1.80* Hogs: Higher Futures: Higher Lean Equiv: $103.71 +$2.96** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 eagerly awaited cash cattle trade Friday, but the close of the futures market did not see prices established. There had been concern cash would not be better than steady with last week. Cash cattle did trade mostly steady with some cattle trading for $1.00 higher, but the higher prices were more of the exception. It is a holiday-shortened week with the packers coming into the week short-bought and a tight cattle market. The packers are trying to improve their margins by reducing slaughter. Margins are improving and demand is not slowing. This requires them to step up and pay more for cattle to meet the demand. Feedlots are comfortable holding cattle for higher cash. The quarterly stocks and acreage report put pressure on the corn market, reducing feed costs for holding cattle. The Commitments of Traders showed fund traders adding 5,753 long live cattle futures positions, bringing their net-long position to 61,706 contracts. Funds reduced their long position in feeder cattle by 503 futures contracts to a current net long position of 2,483.