DTN Early Word Livestock Comments 07/18 06:20

DTN Early Word Livestock Comments 07/18 06:20 Cash Cattle Trade Steady Live cattle futures were higher as the potential of lower cash for the week dissipated as cattle were traded in the South at steady money. Feeder cattle futures posted moderate gains except for the August contract. Hog futures showed another day of gains as the market corrected from being oversold. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.88 -$1.20* Hogs: Lower Futures: Mixed Lean Equiv: $105.23 -$1.55** *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: Cash cattle trade was not anticipated until late in the week. Packers needed cattle and they paid steady money in the South. This is unusual during the week of the Cattle on Feed report. Feedlots were anxious to move cattle and packers wanted to buy them. It was expected cash would trade lower due to the weakness of boxed beef. There are expectations Northern dressed cattle will trade higher. Boxed beef prices closed lower with choice cuts down $1.10 and select down $3.15. This moves the select price below $300 to $298.44 on Wednesday. Traders may position themselves ahead of the Cattle on Feed report released on Friday. After all, the report is notorious for surprises. The estimates are for cattle on feed July 1 to be 101.2% compared to a year ago. Placements in June are estimated at 97.0% with cattle marketed in June at 91.8%.