DTN Early Word Livestock Comments 09/28 06:29

DTN Early Word Livestock Comments 09/28 06:29 Follow-through Buying in Hogs Expected There was quite a divergence between cattle and hog futures Monday. Live cattle held their own showing minor losses while feeder cattle were under significant selling pressure, Hogs moved sharply higher with December and February moving limit up. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $223.03 -0.31* Hogs: Steady Futures: Higher Lean Equiv: $119.15 +1.18** * 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: The bearish reaction to the Cattle on Feed report was evident in the feeder cattle market as traders traded the bearish implications of higher placements. But the overall cattle complex has to deal with higher supplies and placements than expected. Live cattle may have this mostly factored in and may hold recent support if cash cattle will be able to hold. However, the report may keep packers from being aggressive this week likely because they were able to purchase cattle last week at steady to lower cash. Boxed beef prices were lower with choice cuts down $0.62 and select cuts down $0.15. The Commitment of Traders report showed funds were net sellers of 11,339 reducing their net-long positions to 34,704. This is much lower than it had been just a few weeks ago.