DTN Early Word Livestock Comments 09/01 06:08

DTN Early Word Livestock Comments 09/01 06:08 Futures Ripe for a Bounce Cattle futures were hit hard again Tuesday, finding no support from lower grain prices. The market is running on disappointment with traders exiting long positions. Hog futures have had a false breakout with prices back to where they were last week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $259.44 -$0.32* Hogs: Steady Futures: Mixed Lean Equiv: $116.56 -$0.71** * 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: Live cattle futures have fallen over the past six days as traders become disappointed that cash has not been able to increase. Potential supply tightness later this year is certainly not in focus right now. Traders anticipate steady to even lower packer bids due to the potential slowing of demand after the Labor Day weekend and due to declining boxed beef prices. Tuesday, choice cuts were down $0.67 with select cuts down $0.52. There is some expectation cash trade may surface Wednesday, but with virtually no interest so far, it is possible activity may be very limited. After six days of selling, futures should be ready for a bounce, but a price increase may be limited.