DTN Early Word Livestock Comments 08/29 06:23

DTN Early Word Livestock Comments 08/29 06:23 Further Strength Expected in Futures Feeder cattle led the charge higher Monday for the cattle complex as traders believed continued strength in the country dictated higher prices. Live cattle came along, even though traders remained cautious. Hogs pushed higher despite the bearishness of cash and cutouts Friday. Packers were aggressive Monday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.11 -$0.52* Hogs: Higher Futures: Higher Lean Equiv: $103.16 +$2.63** *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: Feeder cattle futures pushed easily to new contract highs in September and later contracts. August will cease trading on Thursday as the contract goes off the board. There will likely be follow-through buying as new contract highs might bring in further technical buying interest. With continued strong interest in the country for feeder cattle and higher prices at auctions, traders were confident higher prices were necessary Monday. Live cattle were moderately higher, pulled along by the strength of feeders but remaining cautious over the strength of cash this week. Boxed beef prices slipped Monday with choice down $0.86 and select down $0.58. Packers will purchase cattle this week, but not aggressively due to the Labor Day holiday next week. FSA announced it is updating the Livestock Indemnity Program (LIP)payment rate to producers that have lost cattle during the extreme heat this summer. The payment rate for beef calves over 800 pounds will increase from $1,244 per head to $1,618 per head.