DTN Early Word Livestock Comments 07/29 06:16

DTN Early Word Livestock Comments 07/29 06:16 Livestock May See Further Pressure The cattle complex did not see much in the way of trend Thursday with futures trading in a rather tight range. Lower cash put more pressure on live cattle while higher corn prices put pressure on feeder cattle. Hog traders were uncertain what to do as higher cutouts were offset by weak cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $197.27 -$0.18* Hogs: Lower Futures: Mixed Lean Equiv: $136.91 +$2.00** *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 are having a difficult time overcoming the seasonal slump with packers taking advantage of the need of some to move cattle due to drought and the lack of feed or due to high-priced feed. Northern cattle traded $2.00 lower while Southern cattle traded $1.00 lower. Packers have been able to purchase cattle for immediate needs as well as deferred delivery. That will not last indefinitely as supply will eventually tighten. However, fears over a recession and its impacts weigh on the market as the U.S. economy shrank for the second consecutive quarter as the GDP fell at a 0.9% annual rate for the second quarter. Boxed beef prices showed weakness with choice down $0.22 and select down $1.00. Weekly exports sales were good at 25,300 metric tons (mt), up 6% from the previous week.