DTN Early Word Livestock Comments 08/25 06:04

DTN Early Word Livestock Comments 08/25 06:04 Cattle Trade Pushed to the End of the Week The livestock complex had a fire lit under it yesterday with gains posted in all contracts. The increase in cattle was a bit of a surprise as it appears lower cash will again be evident. Hogs were not supported by cash, but cutouts provided some hope. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.34 +0.36* Hogs: Steady Futures: Mixed Lean Equiv: $112.07 +$4.13** *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 futures struggled for a time, but traders found the wherewithal to buy aggressively into the market. It is possible traders are already looking past this week in anticipation cash will need to improve due to continued strength of boxed beef. Packers will not be able to reduce slaughter indefinitely if demand improves. Feedlots hope packers will become more aggressive due to improved margins. Boxed beef was again higher with choice up $0.58 and select up $0.32. Some cattle traded yesterday in Nebraska and Iowa about $2.00 to $3.00 lower than last week. No other trade has been done with the activity today likely following the lead so far. Weekly exports sales were 25% lower than the previous week totaling 11,400 mt. Feeder cattle found support as traders kept pace with live cattle and likely covered some short positions that had profit ahead of the weekend. Traders are likely trading for the short-term scalping the market due to it moving in a sideways pattern.