DTN Early Word Livestock Comments 07/14 06:15

DTN Early Word Livestock Comments 07/14 06:15 Cattle May Run Out of Steam Live cattle closed higher with spillover support from feeder cattle. Light cash trading activity developed Wednesday, indicating steady prices may be the best we can hope for this week. Hogs gapped higher Wednesday in nearby contracts as traders reacted to strong cash and cutouts recorded Tuesday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $196.16 -$0.42* Hogs: Higher Futures: Mixed Lean Equiv: $126.46 +$0.81** *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 have been moving higher, somewhat reluctantly. Feeder cattle have been the driver this week with impressive gains due to lower grain prices as well as strong demand at auctions. The gain of live cattle may be limited this week as light cash trading activity indicates the best we may hope for is steady cash. A few cattle traded in the South as steady cash with last week while Northern dressed cattle showed some activity as much as $2.00 lower. This likely set the tone for what we will be seeing Thursday as much more business is likely to be accomplished. Boxed beef closed lower with choice down $0.46 and select down $0.91. Even though slaughter speed remains brisk, and cattle are lighter, inflation at a 41-year high increases the concern over the level of ongoing demand.