DTN Early Word Livestock Comments 07/11 06:17

DTN Early Word Livestock Comments 07/11 06:17 Cash Cattle Trade Lower Livestock futures fell Wednesday as selling pressure continued. Cash cattle traded lower, which is now factored into the market. Hogs were unable to find support with new contract lows and spread unwinding. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $236.16 -$0.85* Hogs: Lower Futures: Mixed Lean Equiv: $100.14 +0.57** *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: It was anticipated cash would trade earlier this week. Unfortunately, prices were lower. Live cattle in the South traded $4.00 lower with Northern dressed cattle $2.00 lower. The selling pressure on futures this week likely has this factored in and now that cash has traded, the selling pressure may subside. Further cash business is likely to take place along those levels. Boxed beef prices declined with choice down $1.61 and select down $0.37. The weakness of boxed beef prices will keep packers on the defensive as it indicates demand may be slowing. Feeder cattle futures have exhibited greater weakness than live cattle with futures nearing technical support from early June.