DTN Early Word Livestock Comments 07/20 06:21

DTN Early Word Livestock Comments 07/20 06:21 Cash to Set Market Direction Wednesday True to form, feeder cattle traders responded to lower corn futures through buying the market aggressively, leaving a price gap on the open. Live cattle found spillover support as well as a slight indication of the possibility of no worse than steady cash. Hogs struggled with the usual spread trading activity, favoring buying the nearby months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $199.91 +$1.22* Hogs: Steady Futures: Higher Lean Equiv: $133.12 +$3.16** *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 in charge Tuesday, pushing over $2.00 higher in some contracts. Substantially weaker corn prices and strong demand at sale barns continue to provide support. Live cattle received the benefit of spillover trading, but the gains were subdued by the uncertainty of cash. However, a few head were traded Tuesday, which provided some hope that cash might be able to at least hold steady this week. Boxed beef was higher with choice up $2.20 and select up $1.07. Boxed beef trending higher is improving packer margins, which may result in higher cash. The Cattle on Feed report and the Cattle Inventory report on Friday may keep price movement subdued the rest of the week.