DTN Early Word Livestock Comments 08/16 06:13

DTN Early Word Livestock Comments 08/16 06:13 Futures Have Difficulty Finding Support The livestock complex could not find any support Tuesday with red ink in all categories and contracts. Traders may wait to see direction from cash, which may take until the end of the week again. Hog futures found no support from cash or cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.24 +$1.42* Hogs: Steady Futures: Mixed Lean Equiv: $115.78 -$0.45** *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 spent a period in positive territory Tuesday but could not find enough support for a positive close. With some early, light trade reported at a steady price with last week, there is concern feedlots may need to move cattle as they have been holding some over for a few weeks. Packers have slowed slaughter speed in the attempt to improve margins. This seems to be working to some degree as boxed beef prices have shown some recent strength. Boxed beef was higher in both categories with choice up $1.76 and select up $2.58. Another influence that may impact trading activity the rest of the week is the upcoming Cattle on Feed report on Friday. Feeder cattle may be running out of steam as even the sharp decline of corn Tuesday was not able to generate aggressive futures buying. Futures have been in a sideways range for nearly a month, either building support or establishing a ceiling.