DTN Early Word Livestock Comments 07/14 06:19

DTN Early Word Livestock Comments 07/14 06:19 Futures May Consolidate The movement higher of the livestock complex was impressive and welcomed. Cattle futures were more technically driven, while hogs were both technically and fundamentally supported. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $202.26 -$1.20* Hogs: Steady Futures: Higher Lean Equiv: $125.54 +$1.08** * 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 livestock complex put in a positive day Tuesday. Live cattle futures were able to erase much of the losses of the previous four trading sessions, moving contracts back into the consolidation range they had been in for about three weeks. The cash had some activity already this week with a number of cattle sold in the North at steady money with last week. This may have set the stage for the week. The rebound of futures may require packers to think about what they need to bid in order to accomplish further business. However, the continued weakness of boxed beef points to the possibility of no better than steady bids as the week progresses. The decline of boxed beef has been steep and with choice cuts down $1.66 and select cuts down $2.03, the weakness continued. Packers will still need to purchase cattle, but they may not need to be as aggressive this week due to the amount of cattle already purchased ahead.