DTN Early Word Livestock Comments 07/03 06:15

DTN Early Word Livestock Comments 07/03 06:15 Cash Cattle May Trade Wednesday Cattle futures exhibited the proverbial turnaround Tuesday as futures eliminated the losses of the past two days. Boxed beef continues to increase. Hog futures showed spread trading with buyers aggressive in the August contract. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $240.02 +$0.67* Hogs: Steady Futures: Mixed Lean Equiv: $100.14 -$1.09** *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: Cattle futures found strong buying interest as boxed beef prices continued to increase. Strong consumer demand continues to push boxed beef prices higher. Choice gained $1.21 with select up $0.07 on Tuesday's trade. Packers would like to get ahead of the market and improve margins but must also purchase cattle to supply demand. This requires them to be rather aggressive in the cash market. Some cash activity will likely take place Wednesday as Thursday is Independence Day. However, most business was done late Friday last week and this week could be the same. Cattle supplies are tight and will remain that way for quite some time. Consumer demand remains exceptional and is not following the usual decrease in summer.