DTN Early Word Livestock Comments 07/13 06:24

DTN Early Word Livestock Comments 07/13 06:24 Mixed Trading Activity Anticipated Feeder cattle carried the cattle complex Tuesday with prices moving back to the highest level since March. Live cattle followed somewhat reluctantly, closing with moderate gains. Hog futures struggled despite higher cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $197.58 -$0.01* Hogs: Higher Futures: Higher Lean Equiv: $125.65 +$2.40** *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: Feeder cattle were the direct beneficiaries of the substantial decline of corn futures. The August contract closed at the highest level since March 30, decisively breaking out of the sideways trading range. Live cattle went along for the ride as traders still wait to see what cash will do. A few cattle traded in Nebraska, steady with last week on a dressed basis, but nothing to determine a trend. Boxed beef prices were mixed with choice up $0.37 and select down $0.83. The World Agricultural Supply and Demand report did not show a lot of change, but it was slightly supportive to the market in terms of fourth quarter beef production decreasing 345 million pounds from the third quarter level with fourth quarter average price of $145.00, up $6.00 from the third quarter.