DTN Early Word Livestock Comments 07/01 06:40

DTN Early Word Livestock Comments 07/01 06:40 Cash Uncertainly the Rest of the Week The large change in dynamics of the grain markets will have an influence on the livestock complex. Feedlots may be more willing to move cattle as quickly as possible leaving packers less willing to bid higher. Hogs are balancing market fundamental and technical trading. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $214.14 -1.28* Hogs: Steady Futures: Higher Lean Equiv: $120.60 -0.38** * based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: Feeder cattle fell in response to the strong increase of grain prices as a result of the bullish Acreage and Quarterly Stocks reports Wednesday. Further gains were seen in grains overnight, which may put further pressure on the market. However, live cattle futures were not pressured the same as they closed higher. Gains were limited due to cash cattle trade surfacing, which did not show much to get excited about. Trade in the South was steady to $2.00 lower with Northern trade $1.00 higher than last week. Packers now have a bullish grain market on their side, which may reduce their desire to aggressively bid for cattle. A continued decline of boxed beef may also have an impact even though packers margins are still strong. Choice cuts were down $1.09 with select cuts down $1.13. The upcoming holiday weekend may influence the amount of cattle traded this week.