DTN Early Word Livestock Comments 07/20 06:27

DTN Early Word Livestock Comments 07/20 06:27 Livestock Futures Search for Support Cattle futures held well while hog futures fell Monday. Cattle may have been more influenced by corn futures while hogs may have been influenced more by the economy and the large sell-off in other commodities as a result. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $197.57 -1.20* Hogs: Steady Futures: Mixed Lean Equiv: $128.61 +1.91** * 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 moved within a range of $1.00 to $1.50 Monday, which can be considered somewhat eventful from the volatility we have become accustomed to. The positive aspect is that cattle were able to close mixed while many other outside markets melted down because of renewed fears of the surge in cases of the COVID variant. There were fears this could hinder the growth of the economy. However, cattle prices held well even though the cash market was not tested, and boxed beef prices continue to fall. Showlists are smaller this week with asking prices higher. Packers are not expected to be aggressive or possibly even to bid at steady prices with last week as they have some supply of cattle already in hand. Choice cuts declined $1.45 and select cuts declined $2.30. The Commitment of Traders report showed funds as net sellers of 7,767 futures contracts reducing their net-long positions to 55,114 contracts.