DTN Early Word Livestock Comments 07/09 06:23

DTN Early Word Livestock Comments 07/09 06:23 Livestock Futures May Bounce Tuesday Traders were not convinced Monday that continued higher cash will develop in the cattle market. There is concern over demand moving through the summer. Hog futures continue to see continued pressure on later contracts and new contract lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $239.71 -$0.05* Hogs: Higher Futures: Higher Lean Equiv: $101.81 +$1.08** *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: Buying in the cattle complex quickly ran its course, resulting in the selling pressure surfacing. Even though the August contract holds a discount to cash, the attitude of traders seems to have changed. With the July 4th holiday in the rearview mirror, beef demand may slow seasonally, impacted by summer weather. Boxed beef prices were mixed with choice up $0.04 and select down $0.34. Showlists this week are higher in most regions, potentially indicating feedlots need to move cattle and may not want to hold out much for higher prices. Cash trading may take place earlier than it has the past few weeks as the packers will need to buy and feedlots will need to sell. This could keep cattle prices steady with last week. The Commitments of Traders report showed funds increasing their net-long futures positions in live cattle by 7,005 contracts, totaling 68,711. Fund traders increase their net-long futures positions in feeder cattle by 1,122 contracts to a net long of 23,605 contacts.