DTN Early Word Livestock Comments 07/22 06:20

DTN Early Word Livestock Comments 07/22 06:20 An Uncertain Reaction to Friday's Report Cattle traders were cautious going into the weekend and the Cattle on Feed report. Beef demand is struggling. Hogs had a good Friday with contracts posting gains through August of 2025. Demand seems to have improved. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $229.83 -$1.27* Hogs: Lower Futures: Higher Lean Equiv: $108.11 +$1.95** *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 were uncertain ahead of the Cattle on Feed report Friday, as the report generally holds surprises. This one was no exception as the placement number was lower than expected at 93.0%. It was within the wide range of estimates, leaving it in a neutral position. Placements were expected to be lower due to the large placements in May. The on-feed number on July 1 was 101.0%, in line with the estimates. Marketings were 91.0% and lower than the estimate of 91.8%. This will leave traders cautious on the open as these numbers may have been factored in. Boxed beef prices showed further weakness on Friday with choice down $2.32 and select down $0.66, indicating demand is currently struggling. The Commitment of Traders report showed funds selling 3,922 live cattle futures contracts, reducing their net-long position to 65,041. Fund traders increased their long futures position for feeder cattle by 1,006 contracts to a net long of 3,211.