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DTN Early Word Livestock Comments      07/22 06:20
   An Uncertain Reaction to Friday's Report

   Cattle traders were cautious going into the weekend and the Cattle on Feed
report. Beef demand is struggling. Hogs had a good Friday with contracts
posting gains through August of 2025. Demand seems to have improved.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed       Live Equiv: $229.83 -$1.27*

   Hogs: Lower         Futures: Higher      Lean Equiv: $108.11 +$1.95**

   *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:

   Traders were uncertain ahead of the Cattle on Feed report Friday, as the
report generally holds surprises. This one was no exception as the placement
number was lower than expected at 93.0%. It was within the wide range of
estimates, leaving it in a neutral position. Placements were expected to be
lower due to the large placements in May. The on-feed number on July 1 was
101.0%, in line with the estimates. Marketings were 91.0% and lower than the
estimate of 91.8%. This will leave traders cautious on the open as these
numbers may have been factored in. Boxed beef prices showed further weakness on
Friday with choice down $2.32 and select down $0.66, indicating demand is
currently struggling. The Commitment of Traders report showed funds selling
3,922 live cattle futures contracts, reducing their net-long position to
65,041. Fund traders increased their long futures position for feeder cattle by
1,006 contracts to a net long of 3,211.
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