DTN Early Word Livestock Comments 08/10 06:24

DTN Early Word Livestock Comments 08/10 06:24 Traders Anticipate Better Cash Cattle futures closed higher Wednesday while hogs suffered significant losses. Traders were looking for something to support cattle and they found it in weaker corn and the potential for cash. Hogs could not hold as weaker cutouts did not provide support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.35 +$1.02* Hogs: Steady Futures: Mixed Lean Equiv: $116.32 -$2.97** *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: The trading correlation between the cattle complex and corn futures is old and really, when you think about it, one day of an increase or decrease in corn prices is not going to have an influence on the price of cattle. However, that has been a long-standing correlation that continues to be traded, having an influence on the market. Thus, it has an impact on trading from day-to-day. The more important aspect is the strength of boxed beef for the second day with choice up $1.13 and select up $1.98. Maybe demand is increasing again. Whether that will translate into higher cash prices is yet to be seen. Currently, the anticipation is for steady cash. A few light sales took place Wednesday, providing no strong indication of cash with more sales expected Thursday.