DTN Early Word Livestock Comments 07/27 06:14

DTN Early Word Livestock Comments 07/27 06:14 Higher Cash Hogs Expected Again Wednesday Live cattle drifted lower as traders saw a stronger potential for lower cash trade this week. Feeder cattle were again under pressure due to the surge of corn prices. Hogs just could not find any strong buying interest with futures showing minor losses. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $198.44 +$0.29* Hogs: Higher Futures: Higher Lean Equiv: $134.89 -$1.05** *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: There was anticipation cash might struggle again this week and early indication is that assessment may be correct. There was some light trade which took place in the South $1.00 lower than last week. Early trade generally sets the stage for the week. Dressed cattle could trade differently as more cash activity surfaces Wednesday. Even though slaughter pace continues to run strong, packers may not need to be very aggressive again this week. Boxed beef prices were mixed with choice up $1.00 and select down $1.12. Feeder cattle gapped lower on the open Tuesday with August and September contracts unable to close the gaps. Higher corn prices put pressure on the market.