DTN Early Word Livestock Comments 07/23 09:44

DTN Early Word Livestock Comments 07/23 09:44 Cattle on Feed Report May Limit Volatility Cattle were the beneficiaries of lower grain prices Thursday with similar support possible Friday as overnight grain futures were lower. Trading may be limited as the Cattle on Feed report will be released after the close. Hog futures remain in an uptrend, but positive fundamental news is becoming harder to find. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $198.39 +$0.79* Hogs: Lower Futures: Mixed Lean Equiv: $129.07 +$0.22** * 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: Cattle futures got a boost Thursday from lower grain prices again. Support also came from higher boxed beef prices. Choice cuts gained $0.90 with select cuts up $1.00. However, cash activity was not what we wanted to see as business was done at lower prices. Cattle in the North sold on an average $3.00 lower than last week with cattle in the South $1.00 lower. That impact was mitigated due to an acceptable weekly export sales report and the fact that the June Cold Storage report was to be released after the close. Cold storage numbers may provide some support to the market Friday as beef in cold storage in June was the lowest level over the past seven years. However, traders may remain cautious as they look ahead to the Cattle on Feed report to be released after the close Friday. The estimates for the report are for placements at 95.9%, marketings at 102.1% and on-feed numbers at 99% of last year. Traders have had overnight to digest the Cold Storage report and will have the weekend to digest the Cattle on Feed report.