DTN Early Word Livestock Comments 09/07 06:25

DTN Early Word Livestock Comments 09/07 06:25 Market Direction May Be Slow to Develop Pressure on the cattle complex has been brutal. The anticipation of strength after the Cattle on Feed report showed continued tightening supplies was quickly and dramatically discounted as demand came into question. Now that Labor Day is over, the market can focus on actual demand and perceived demand. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $246.00 -$0.92* Hogs: Steady Futures: Mixed Lean Equiv: $115.58 -$1.24** * 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: Triple-digit losses permeated the entire cattle complex for contracts through next year. Last week was brutal with October live cattle falling $4.33 and September feeder cattle down $6.18 since the close of the previous week. It was the final trading day before the extended Labor Day weekend and a time when beef demand generally slows. Traders decided to err on the cautious side and sell positions. It is uncertain just how much beef demand will decrease. Boxed beef prices continued to decline with choice cuts down $1.50 and select cuts down $0.84. Psychologically, the market may find some support as the anticipation may have pushed the market too low and futures will need to correct. Once holiday demand is assessed, further price direction will be established. Traders were disappointed over the performance of cash cattle last week, leaving it difficult for them to get too excited early this week as further cash uncertainly lingers.