DTN Early Word Livestock Comments 07/24 06:19

DTN Early Word Livestock Comments 07/24 06:19 Markets Continue to Adjust to Fundamentals The livestock complex showed another strong day Tuesday as optimism was prevalent. There is anticipation for possible better cash trade in cattle this week. Hogs continue to see short-covering as bullish fundamentals continue to impact trading. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $229.07 -$0.46* Hogs: Lower Futures: Higher Lean Equiv: $109.45 -$1.02** *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 became more confident cash cattle might trade higher this week, causing the market to reduce the discount they were holding to cash. Steady cash trade this week would be considered friendly to the market. Packers have some cattle purchased ahead, which may leave them less willing to match the higher offers of feedlots. Some limited cash trade was seen in Kansas at $1.00 lower than last week. This does raise some concern as continued lower boxed beef prices may be the deciding factor. Tuesday's boxed beef prices were lower with choice down $0.23 and select down $1.67. This may cause the packers to hold the line on what they are willing to pay for cattle.