DTN Early Word Livestock Comments 07/06 09:09

DTN Early Word Livestock Comments 07/06 09:09 Trader Uncertainty to Begin the Week Cattle futures being unable to hold through the end of last week is partially blamed on the disruption to the July Fourth holiday falling on the weekend. However, continued pressure on boxed beef may indicate demand is slowing. Hog futures may have a slow beginning to the week as traders may be cautious until they see the cash market develop. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $209.74 -1.56* Hogs: Higher Futures: Mixed Lean Equiv: $121.85 -0.54** * 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: Live cattle futures really did not do much last week as far as price movement was concerned. There was volatility, but nothing much to show for it in the end. Cash cattle trade was light for the week, which makes one wonder just how the holiday-shortened week will develop. Packers were not aggressive into the holiday, but they now need to look ahead to expected future demand. They may not want to be as aggressive due to falling boxed beef prices but will still need to purchase cattle. The argument can be made for potential cash trade Tuesday as the holiday is behind and business needs to ramp back up. It is also possible feedlots will want to move cattle more aggressively this week. Cash did not provide the strength they wanted last week, but it is expensive to feed and hold. Boxed beef price fell on Friday with choice cuts down $2.21 and select cuts down $2.52. For the week, choice cuts declined $21.84 with select cuts down $8.81. The Commitment of Traders report showed funds reducing their long futures positions by 4,120 contracts to a net-long position of 114,064 futures contracts.