DTN Early Word Livestock Comments 09/08 06:25

DTN Early Word Livestock Comments 09/08 06:25 Support Remains Elusive Losses mounted Tuesday as commodities in general were under pressure. However, current demand fundamentals are not as good as anticipated earlier in the year, leaving traders somewhat bearish. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $244.91 -$1.09* Hogs: Lower Futures: Mixed Lean Equiv: $113.10 -$2.48** * 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: Commodities fell in general Tuesday as traders came back from an extended weekend seeing overall bearish news. The increase of COVID cases might hinder beef demand to some extent as some slowing of restaurant activity may surface. However, this may be offset by retail demand. The uncertainty is what is driving the market. Steadily declining boxed beef prices are not providing any support either. Tuesday, choice cuts were down $1.23 and select cuts were down $2.23. The cash market was void of business as expected. Showlists were mixed, higher in Texas and Kansas, but lower in Nebraska. The continued losses of cattle futures does not bode well for the potential for higher cash. The decline of futures in light of the sharp losses in grain provides a more bearish scenario than usual. The Commitment of Traders reports showed funds as net sellers of 9,003 futures contracts, reducing their net-long positions to 83,646 contracts.