DTN Early Word Livestock Comments 07/17 06:21

DTN Early Word Livestock Comments 07/17 06:21 Hog May See Further Short-Covering Wednesday Cattle futures closed higher Tuesday but the interest seemed to lack conviction and rightly so due to the weakness of boxed beef and the upcoming Cattle on Feed report. Hogs finally had a strong day with nearby months outpacing deferred contracts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $233.08 -$1.82* Hogs: Higher Futures: Higher Lean Equiv: $106.78 +$2.58** *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 showed gains Tuesday, but traders seemed to lack conviction with contracts held to double-digit gains. The potential for lower cash cattle prices again this week will keep traders cautious. They want the market to go higher due to tight cattle numbers, but the bottom line is demand. Boxed beef has shown weakness and Tuesday was no exception. Choice cuts fell $2.23 and select was down $3.23. Along with the concern over demand, the Cattle on Feed report will be released Friday after the close. The estimates are for cattle on feed on July 1 to be 101.2% compared to a year ago. Placements are estimated at 97.0% with cattle marketed in June at 91.8%. Cash cattle may not trade until late in the week as is usually the case when it is a report week. Feeder cattle are seeing some demand weakness at auctions with lower prices being paid for animals.