DTN Early Word Livestock Comments 07/12 06:15

DTN Early Word Livestock Comments 07/12 06:15 Further Strength Into The Weekend Livestock futures finally ended the liquidation phase of the week. However, that does not indicate price support has been achieved. Lower cash cattle have been factored in and hogs were overdone to the downside. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $234.81 -$1.35* Hogs: Steady Futures: Mixed Lean Equiv: $102.55 +1.91** *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 finally bounced Thursday as the market has lower cash this week factored in. The strength was technical and limited as support did not come from exports, cash, or boxed beef. More cash cattle traded, averaging $4.00 lower in the South and $2.00 lower for Northern dressed cattle. Feedlots needed to move cattle and packers were unwilling to pay for them. Higher prices may have impacted international demand as export sales were at a marketing year low of only 8,300 metric tons. Boxed beef prices continued their weakness with choice down $2.40 and select down $0.56. If the weakness of boxed beef continues, cattle prices may be lower next week. Demand is following the seasonal decline. The WASDE report will be released Friday at 11 a.m. CDT.