DTN Early Word Livestock Comments      07/18 06:34
   Traders Remain Uncertain About Cash Cattle

   Traders took a wait-and-see attitude in cattle Thursday as the uncertainty
over cash and the direction of boxed beef was the focus. Hog futures moved to
reduce the losses of earlier in the week as traders gained confidence to buy
the break.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher        Live Equiv: $270.95 -$0.65*

   Hogs: Lower            Futures: Mixed        Lean Equiv: $122.28 +$1.58**

   *Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The 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 no information to impact the cattle market negatively Thursday.
Traders became less enthusiastic and took a wait-and-see attitude rather than
anticipating the cash cattle trade. There was some light activity reported late
in the day at steady to $1.00 higher, but no sufficient volume to set prices
for the week. The movement of futures this week could make a case for higher
cash, while the weakness of boxed beef could support a lower cash trade. Boxed
beef prices were mixed Thursday, with choice up $0.43 and select down $4.07.
Weekly export sales were down significantly from the previous week with only
8,800 metric tons (mt) sold. High beef prices may be impacting international
demand. Feeder cattle futures were the recipients of spread trading, resulting
in weakness in the nearby contract and strength in 2026 contracts. Feeder
cattle prices in the country remain strong with a tight supply.