DTN Early Word Livestock Comments 08/30 06:22

DTN Early Word Livestock Comments 08/30 06:22 Lower Corn Overnight May Provide Support Feeder cattle were under significant pressure again due to strong corn prices. Live cattle floundered, unable to generate buying interest as traders focused on the impact feed prices may have on cattle movement. Hog futures finally uncovered buying interest as the market bounced from being oversold. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $194.99 +$0.99* Hogs: Higher Futures: Higher Lean Equiv: $110.58 +$0.34** *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 traders were uncertain of direction Monday, closing slightly lower in all contracts except front-month August. The final day to trade the August contract is Wednesday, leaving it trading close to cash. Traders are uncertain over the aggressiveness of packers this week. No bids were posted with packers content to see how the strength of the corn market will play out and how anxious feedlots might be to move cattle. Packers purchased some cattle ahead last week and will likely continue to do that again this week, as long as they do not need to chase the market higher. However, lighter showlists were distributed Monday, which may change that thinking. Boxed beef was higher with choice up $0.28 and select up $3.99. The Commitment of Traders report showed funds increasing their net-long position 520 contracts to a net total of 66,556 long positions.