DTN Early Word Livestock Comments 08/02 06:23

DTN Early Word Livestock Comments 08/02 06:23 Outside Markets to Influence Trade Cattle closed higher Monday due to lower corn prices. That leaves the market little to go on Tuesday as cash is not expected to show much, if any, activity. Hog futures were mixed as they did not find solid direction from either cash or cutouts. Outside markets may have an influence on Tuesday's activity. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $198.86 +$0.81* Hogs: Steady Futures: Mixed Lean Equiv: $135.77 +$0.36** *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: Cattle did not see much volatility Monday with most contracts confined to price swings of around $1.00. The market was searching for direction and could only find it from weaker corn prices. Boxed beef was higher, but traders did not put much emphasis on that as the strength might be short-lived once retail demand is satisfied after the weekend. Choice cuts increased $1.36 with select up $0.65. Cash is expected to be no better than steady this week as packers have a portion of their cattle already contracted. This leaves them less aggressive, as they have been the past few weeks, generally resulting in weakness. The Commitment of Traders report showed funds as net buyers of 17,840 contracts of live cattle, moving their net-long positions to 37,505.