DTN Early Word Livestock Comments 09/20 06:15

DTN Early Word Livestock Comments 09/20 06:15 Livestock Futures Search for Direction Live cattle floundered much of Monday, trading in a narrow range as traders searched for direction. There is optimism for higher cash, but caution is being exercised. Hogs moved somewhat similar to cattle with futures able to post a slightly higher close in most contracts. Cash was finally higher but offset by cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $187.09 -$0.13* Hogs: Higher Futures: Mixed Lean Equiv: $113.93 -$0.51** *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: Cattle were choppy Monday, searching for price direction. There is underlying optimism over stronger cash this week, but traders are cautious due to the upcoming Cattle on Feed report. Futures are poised to break to and through contract highs if both cash and boxed beef moves higher. Boxed beef has been struggling and trending lower. Choice cutouts are slightly below the three-year average and quite a bit lower than a year ago. The FOMC meeting this week is expected to result in a significant interest rate increase, which may cast a cloud over the market. This may limit the desire of packers to pay more for cattle. They may be willing to limit their spending until they see the interest rate hike and the Cattle on Feed report numbers. Boxed beef was mixed Monday with choice up $0.05 and select down $0.76.