DTN Early Word Opening Livestock 07/17 06:48

DTN Early Word Opening Livestock 07/17 06:48 Mixed Trade Expected Technical traders may feel the live cattle market may be poised to see further losses as the market corrects from its overbought status. Without cash being tested yet this week, futures seem to be unwilling to add further price premium. The upcoming Cattle on Feed report may also keep market volatility to a minimum as traders positions themselves ahead of the report. Hog futures showed a surprising divergence between August and October as spread trading continued. By Robin Schmahl DTN Dairy Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv: $136.75 -0.10* Hogs: Steady Futures: Higher Lean Equiv: $ 80.66 +2.90** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: There were no cash cattle traded Tuesday as packers and feedlots have so far been unwilling to budge. The inability of cattle futures to reach to higher ground may make it difficult for feedlots to make a case for higher cash business to be done. Although futures are still in an uptrend, there is concern a temporary top may be made as the market corrects from being overbought. Cutout values will need to find support in order to add support to cattle futures. Beef supply is expected to decline from the fourth quarter of this year into the first quarter of next year with December and February futures showing that.