DTN Early Word Livestock Comments 08/09 06:33

DTN Early Word Livestock Comments 08/09 06:33 Choppy Trade Expected Trade was mixed throughout Tuesday in the livestock complex. Traders seemed uncertain over price direction. Without direction from cash, the cattle complex may drift. Hogs were divided as cash was stronger while cutouts failed. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.33 +$0.64* Hogs: Higher Futures: Lower Lean Equiv: $119.29 -$3.22** *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 had very little to focus on except perception. The idea seems to be leaning toward steady cash this week as packers seem to be taking steps to limit cattle purchases this week with slower slaughter and some cattle already on the books. However, feedlots seem to be confident tighter numbers will remain in their favor and holding cattle longer will net benefits. Boxed beef prices moved higher with choice up $0.90 and select up $1.15. Packer margins remain low, which keeps them continuing to sharpen their pencils. Feeder cattle declined as the market might be getting tired and a large price correction may be in order before potentially regaining the uptrend.