DTN Early Word Livestock Comments 07/09 06:43

DTN Early Word Livestock Comments 07/09 06:43 Follow-through Weakness Likely It is Friday, and many times traders will take some profits. However, the fact that cattle broke below support Thursday may have turned the market more bearish, leaving sellers more confident to hold positions. Hog futures may hold sideways as traders monitor cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $207.15 -1.87* Hogs: Steady Futures: Mixed Lean Equiv: $123.55 +1.15** * 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: The market was not kind to the cattle complex Thursday with triple-digit losses across all contracts. It is likely the weakness of live cattle that pulled feeder cattle lower. Continued weakness of corn futures generally might have supported feeders, but that was not the case. Live futures broke below the sideways range they had been in, which may have triggered sell stops, exaggerating the weakness. However, cash did not perform well this week, adding to the pressure. Texas cattle traded at an average of $120 with Nebraska averaging $125. Kansas ranged from $119 to $122 averaging $120. These were steady to slightly lower than last week. That put the pressure on August futures. Packers were able to purchase cattle ahead for the resumption of regular slaughtering schedules. Boxed beef continues to plummet with choice cuts down $2.93 and select cuts falling $2.20. Weekly export sales are not expected to be very supportive to the market Friday.