DTN Early Word Livestock Comments 07/25 06:23

DTN Early Word Livestock Comments 07/25 06:23 Cash Cattle Trade Expected Thursday Nearby live cattle futures closed slightly higher Wednesday as contracts remained close to cash. The uncertainty of cash trade makes traders cautious. Hog futures had another good day, continuing the trend higher supported by cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $228.23 -$0.84* Hogs: Lower Futures: Higher Lean Equiv: $110.71 +$1.26** *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 did not surface Wednesday even though some business took place on Tuesday. It is uncertain whether the few cattle that traded $1.00 lower on Tuesday had set the stage for the rest of the week. Cash activity is likely to surface Thursday. Feedlots may not want to hold out until the last minute and then find out they may need to hold market-ready cattle over another week. The pressure continued on boxed beef prices Wednesday with choice down $0.53 and select down $2.70. The continued weakness of boxed beef may leave packers unwilling to bid higher for cattle. Feeder cattle futures eliminated Tuesday's gains and contracts were unable to find support