DTN Early Word Livestock Comments 08/28 06:35

DTN Early Word Livestock Comments 08/28 06:35 Livestock Futures Eye Holiday Next Week Cattle futures closed higher, adjusting to cash to close out the week. Cash cattle did not trade higher but did not weaken as much as feared. Hogs ended last week mixed but might struggle to begin this week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.63 +0.29* Hogs: Lower Futures: Lower Lean Equiv: $100.53 -$11.54** *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: Cash cattle ended the week steady to lower, but better than some had anticipated. Northern cattle traded $1.00 lower Friday, which was a bit better than earlier trade during the week. Southern cattle were about steady with the previous week. The fact that cash is not improving despite boxed beef showing strength indicates packers are playing their cards right and slower slaughter is improving margins. A seasonal decline of boxed beef after Labor Day may provide some headwind to the market. Packers may exercise patience again this week as they are purchasing ahead for the holiday-shortened week next week. Boxed beef was higher Friday with choice up $0.27 and select up $0.76. The Commitment of Traders report showed funds reduced their long futures positions by 7,377 contracts, bringing their net-long positions to 90,394 contracts. Feeder cattle showed funds reducing their long positions by 1,283 contracts, bringing their net-long positions to 11,888 contracts.