DTN Early Word Livestock Comments 08/11 06:21

DTN Early Word Livestock Comments 08/11 06:21 Higher Cash Cattle Trade Expected Cattle and hog futures diverged Thursday. Cattle were supported by feedlots holding out another day, pushing most cash trade to Friday. Hogs fell as cash was weaker. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.54 -$0.81* Hogs: Lower Futures: Mixed Lean Equiv: $120.21 +$3.89** *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 anticipate higher cash for the week. Some cash activity took place Thursday at higher prices with the expectation for general cash trade to develop at $1.00 to $2.00 higher. With feedlots passing on packer bids Thursday, packers are faced with the realization they may have to pay more again this week. This will tighten their bottom line as boxed beef showed weakness Thursday with choice down $1.49 and select down $0.34. Packers did have some cattle purchased ahead, but they will need to continue to purchase ahead or face being squeezed further. Weekly export sales totaled 14,800 metric tons (mt), up 19% from last week and positive for continued export demand. Feeder cattle remain in strong demand with higher prices paid at auctions this week.