DTN Early Word Livestock Comments 09/08 06:30

DTN Early Word Livestock Comments 09/08 06:30 Cash Cattle Trade Expected Thursday Cattle could not follow through on the recent strength of the previous two days. Wednesday's action puts higher cash in question as packers still have not stepped up to the plate to purchase. Hogs showed impressive gains early, only to have traders question the strength, resulting in futures pulling back. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $193.28 +$0.17* Hogs: Higher Futures: Mixed Lean Equiv: $110.91 -$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: Traders anticipated cash cattle would trade Wednesday, but when no business was done, caution set in, and live cattle futures slipped. Spillover pressure was felt from the triple-digit losses in feeder cattle. Cash trading has been pushed off until Thursday with anticipation packers will need to step up and pay more for cattle due to strong movement of beef over the holiday weekend. This does not necessarily mean packers will need to be aggressive as they have some cattle contracted ahead, but with the lower cash prices last week, they may pay steady to slightly higher money and still retain good margins. Boxed beef was mixed Wednesday with choice up $0.87 while select declined $1.79.