DTN Early Word Livestock Comments 07/28 06:23

DTN Early Word Livestock Comments 07/28 06:23 Cattle Search for Direction Live cattle did not have much to go on Wednesday with futures trading in a tight range. Further development of cash resulted in lower prices in all areas. Feeder cattle found some strength from the limited strength of corn. Hogs traded the strong cash of Tuesday and again Wednesday. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $197.45 -$0.99* Hogs: Lower Futures: Mixed Lean Equiv: $134.91 +$0.02** *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: Traders did not have much to hang their hat on in the live cattle market. Cash trade Wednesday averaged $1.00 lower in the South and $2.00 lower in the North, marking another week of disappointment. However, even with lower cash, futures remain higher than they were a week ago. There seems to be more of a bullish sentiment building in the market as further liquidation of the cow herd takes place. Slaughter rates continue to remain higher, likely due to lighter weights requiring more animals to achieve the desired tonnage. Boxed beef prices were lower with choice down $1.12 and select down $2.07. Feeder cattle gained even though corn moved higher. Much of the day showed corn struggling, which gave traders the confidence to buy feeder cattle futures. However, the stronger close and strength of corn overnight may renew some pressure Thursday.