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DTN Early Word Livestock Comments 07/10 06:20

10 Jul 2024
DTN Early Word Livestock Comments 07/10 06:20 Further Selling Pressure Expected Wednesday Losses mounted in the livestock complex Tuesday, adding to the pressure from Monday. Cattle traders became less optimistic over near-term demand. Hog futures are unable to find support as futures continue to pancake lower. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $237.01 -$2.70* Hogs: Steady Futures: Mixed Lean Equiv: $99.57 -$2.24** *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 recent weakness in boxed beef is increasing the bearish attitude of traders. This bearishness is not due to the overall picture of the market as cattle numbers remain tight. It is the realization that near-term demand may be impacted by summer weather and a seasonal slowing of demand. Boxed beef prices were lower Tuesday with choice down $4.81 with select down $0.41. The potential for slowing demand caused traders to liquidate some of their positions, causing the downturn during the first two days of this week. Liquidation generally lasts three days and Wednesday would be day three. There may be further selling Wednesday as traders feel cash cattle could trade lower this week.