DTN Early Word Livestock Comments 07/15 06:19

DTN Early Word Livestock Comments 07/15 06:19 Livestock Futures May Coast Through the End of the Week Cattle could not maintain the strength of the first half of the week. However, feeder cattle broke through chart resistance this week with impressive gains while live cattle were unable to penetrate resistance. Hogs followed a similar pattern, unable to break out to the upside. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $197.14 -$0.02* Hogs: Lower Futures: Mixed Lean Equiv: $126.69 +$0.23** *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: Disappointment over cash cattle stifled the momentum futures showed during the first half of the week. It was initially anticipated feedlots would hold for higher cash, but they wanted to move cattle rather than keep them through another period of hot weather limiting weight gain while paying higher feed prices. Cash cattle traded steady to $2.00 lower for the week. There is concern whether the railroad will strike beginning Monday, which would increase feed costs substantially or even result in the inability to obtain needed feed in some areas. It is up to the government to create a Presidential Emergency Board to aid in settling the strike and keep workers in place as the union and companies seek a settlement. Weekly export sales were not good at only 9,200, down 17% from the previous week and a marketing-year low.