DTN Early Word Livestock Comments 07/21 06:18

DTN Early Word Livestock Comments 07/21 06:18 Cattle Futures May Drift Ahead of Report Live cattle could not generate strong buying interest as the hope for higher cash slipped away. Feeder cattle could not capitalize on lower corn prices as traders began turning their attention to the upcoming Cattle on Feed report. Hogs had a banner day with nearby months posting triple-digit gains on strong cash. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $198.64 -$1.278* Hogs: Lower Futures: Lower Lean Equiv: $132.37 -$0.75** *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: The few cattle that traded Tuesday provided hope cash would be no worse than steady with last week. However, trade unfolded Wednesday $2.00 lower, dashing the hopes for any further gains this week. More business needs to be done yet this week, but the tone has been set. Boxed beef fell back Wednesday with choice down $2.04 and select down $1.48. Feeder cattle could not capitalize on the weakness of corn. Traders were cautious about pushing the market too much in relation to live cattle ahead of the Cattle of Feed report, even though there remains strong demand for feeders at the auctions. Estimates for cattle on feed as of July 1 are 101.1%; placements 94.7%; marketings 102.0%.