DTN Early Word Livestock Comments 07/16 06:34

DTN Early Word Livestock Comments 07/16 06:34 Traders Uncertain Over Cash Live cattle futures could not find sufficient buying Monday to push the market higher. The feeling is that cash may trade no better than steady this week due to boxed beef indicating slower demand. Hog futures tried to maintain strength but could not find follow-through buying interest. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $234.90 +$0.12* Hogs: Higher Futures: Mixed Lean Equiv: $104.20 -$0.55** *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: Traders are uncertain about the potential of the market this week. Lower cash last week was indicative of the market showing weakness in demand. Boxed beef prices have been under pressure for the past two weeks. Boxed beef prices were mixed Monday with choice down $0.58 and select up $2.51. Packers were able to purchase 25% of the cattle last week for deferred delivery, which puts them in a position to hold for lower prices this week. Feelots needed to move cattle last week and likely again this week, reducing their desire to hold for higher prices. The benefit for feedlots is the continued weakness of feed prices. It is too early in the week for traders to position themselves for the Cattle on Feed report to be released Friday, but it is in the back of traders' minds.