DTN Early Word Livestock Comments 08/18 06:13

DTN Early Word Livestock Comments 08/18 06:13 Cattle On Feed Report Released Today Cattle futures have shown weakness over the past five trading days, which may signal a change in the market. Cash was lower in the country. Hogs found some buying interest likely as traders were positioning ahead of the weekend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $229.43 +$2.86* Hogs: Steady Futures: Mixed Lean Equiv: $114.94 +$0.52** *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 fear of lower cash seems to be coming to fruition. After quite a few weeks of cash strength, feedlots are letting cattle go at $1.00 lower in most cases. Cattle can only be held for so long before they need to be moved to slaughter. Packers have been slowing slaughter pace and it is working to their benefit as boxed beef prices are improving. Yesterday, choice jumped $5.15 with select up $1.49. There is not much expected for movement today in cattle futures as traders position themselves ahead of the Cattle on Feed report to be released after the market closes. The report is expected to continue to show tighter numbers with the on-feed estimate as of August1 at 98.4% of a year ago. Placements in July are expected at 94.5% with marketings in July at 94.8% of a year ago. This would be supportive to the market, but traders will be leery over any bearish surprise. Weekly export sales totaled 15,100 mt, which was 2% below the previous week. Feeder cattle traders follow the same sentiment with uncertainty over the report.