DTN Early Word Livestock Comments 07/13 06:30

DTN Early Word Livestock Comments 07/13 06:30 Futures May Struggle to Move Higher Live cattle and hog futures were able to post gains while feeder cattle came under pressure due to higher grain prices. Live cattle were unconvincingly higher with the hope of steady cash this week. Hogs seemed to be the beneficiaries of technical buying. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $203.46 -1.95* Hogs: Steady Futures: Mixed Lean Equiv: $124.46 +1.29** * 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: It certainly was a victory for live cattle futures to close positive even though grain futures were higher and choice cuts of beef plummeted $3.59. The fall of boxed beef prices seem to be relentless. Select cuts were able to post a gain of $1.36, offsetting some of the bearishness of the market. The cash market was not tested Monday as is usual for a Monday. It is not likely we will see anything Monday as showlists are being looked over and both packers and feedlots may play the waiting game to see who needs to be more aggressive. The Commitment of Traders report showed funds as net sellers of 2,844 futures contracts, reducing their net-long position to 62,881 contracts.