DTN Early Word Livestock Comments 08/21 06:09

DTN Early Word Livestock Comments 08/21 06:09 Higher Futures Expected for Cattle It was a strong end to the week with hog futures leading the way. Live cattle closed higher with limited gains as the lower cash for the week had already been factored in. Feeder cattle posted triple digit gains even though corn showed strength. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.84 +$1.41* Hogs: Steady Futures: Mixed Lean Equiv: $113.32 -$1.62** *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: Live cattle were moderately higher having already factored in cash trading $1.00 lower for the week. Traders also adjusted positions ahead of the Cattle on Feed report. The report is considered slightly positive to more bullish. On-feed numbers on August 1st were 98% compared to the estimate of 98.4%. Placements in July were 92% of a year ago versus the estimate of 94.5%. Marketings in July were 95% of a year ago with the trade estimate of 94.8%. This is the lowest marketing level for the month of July since 2016. On-feed and marketings were slightly positive while placements were bullish. Futures should open higher based on this report but where they go from there is uncertain. Many times, traders will fade these reports as some of it is already factored in. On the other hand, boxed beef prices were higher with choice up $1.97 and select up $2.10 closing out a strong week of boxed beef gains. The Commitment of Traders report showed funds increasing their long positions by 2,143 futures contracts to a net long of 97,771. Feeder cattle showed a reduction of futures by 240 contracts to a net long futures position of 13,171 contracts.