DTN Early Word Livestock Comments 07/05 06:15

DTN Early Word Livestock Comments 07/05 06:15 Active Cash Cattle Trade To Develop Friday There has been an insufficient amount of cattle traded in the cash market to indicate price strength. The futures activity Wednesday suggests cash will trade higher as feedlots have passed on bids. Hog futures have been mixed so far this week with traders favoring the nearby months. Mixed cash and cutouts limit upside potential. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $239.33 -$0.69* Hogs: Lower Futures: Lower Lean Equiv: $99.45 -$0.69** *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: The consensus for higher cash cattle trade pushed futures higher Wednesday and may see further follow-through Friday. Thinner holiday trade may exaggerate price movement, but higher cash should further support futures. The packers put out bids Wednesday but feedlots let those bids sit with higher offers posted. Feedlots know packers will need cattle and will not settle for less. Boxed beef prices closed lower Wednesday, which may be just normal market business. However, beef demand may slow with the July 4th holiday in the rearview mirror. Boxed beef Wednesday closed lower with choice down $0.55 and select down $2.10. Feeder cattle are near technical resistance and a close above that level could trigger increased buying interest.