DTN Early Word Livestock Comments 07/19 06:15

DTN Early Word Livestock Comments 07/19 06:15 Traders To Position Ahead of Cattle on Feed Report Friday Cattle futures took it on the chin Thursday, declining more than $2.00. The pressure came from Northern dressed cattle trading $2.00 lower. Hogs closed mixed, able to maintain the recent gains supported by cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $231.10 -$0.78* Hogs: Lower Futures: Higher Lean Equiv: $106.16 +$0.93** *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 reversed Thursday, eliminating the gains of Wednesday and then some. The optimism for higher cattle trade evaporated when Northern dressed cattle traded at $2.00 lower. It may have been the fear of a bearish Cattle on Feed report or the concern over demand that increased the desire for feedlots to sell. The idea that holding for higher cash may not pay off as packers have not been aggressive and yet they have been able to purchase cattle ahead. Boxed beef prices were mixed Thursday with choice down $2.01 and select up $1.02. Weekly export sales were good at 15,400 metric tons (mt) but had little influence on the market. The Cattle on Feed report will be released after the close. The estimates are for cattle on feed on July 1 to be 101.2% compared to a year ago with a range of 100.1% to 102.0%. Placements in June are estimated at 97.0% with a range of 89.9% to 102.0%. Cattle marketed in June are estimated at 91.8% with a range of 90.0% to 94.5%.