DTN Early Word Livestock Comments 07/23 06:21

DTN Early Word Livestock Comments 07/23 06:21 Hog Futures Hold Further Upside Potential Cattle futures closed higher Monday with live cattle leading the way and outpacing feeder cattle. Traders felt the Cattle on Feed report provided sufficient support for higher prices. Hog futures extended their recent rally with October and December contracts showing the greatest gains. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $229.53 -$0.30* Hogs: Higher Futures: Higher Lean Equiv: $110.12 +$2.01** *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: With the numbers on the Cattle on Feed report known, traders decided the placement number should be the focus and provide support to the market. The supply of cattle will be tight the rest of the year and the potential for increased demand once the summer is over may provide renewed support for the market. Beef demand has slowed and has been reflected in the boxed beef prices over the past few weeks. Boxed beef on Monday was lower with choice down $0.39 and select down $0.47. Lower boxed beef prices have been the trend recently. The packers have been reducing the slaughter pace, attempting to improve their margins, but they have not made much progress in that direction as boxed beef prices continue to weaken. The early anticipation is for cash cattle to trade at steady money this week.