DTN Early Word Livestock Comments 08/07 06:24

DTN Early Word Livestock Comments 08/07 06:24 Cattle Futures Likely Mixed Cattle futures moved higher Friday because of cash trading higher after another standoff. Hog futures increased as traders positioned ahead of the weekend after two days of significant losses. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.15 -$0.49* Hogs: Higher Futures: Lower Lean Equiv: $120.89 -$1.96** *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: Cash trading finally took place late Friday but not with the volume that had been expected. Trade was still light but higher. Cash prices increased $1.00 to $2.00 from the previous week. Packers needed to step up, but overall trade remained light. Traders were quick to jump on futures as cash looked more promising. With the market adjusting Friday, it is likely futures may trade mixed Monday as it is unlikely futures will challenge the highs unless further support is seen from underlying cash. Boxed beef prices were lower with choice down $0.22 and select down $1.83. Feeder cattle contracts for October and later established new contract highs as the market remains bullish over a tight supply as time progresses. The Commitment of Traders showed funds selling 6,034 live cattle contracts, bringing their net-long futures positions to 100,581. Funds increased their long positions in feeder cattle by 221 futures contracts, bringing their net-long positions to 14,433 futures.