DTN Early Word Livestock Comments 09/05 06:28

DTN Early Word Livestock Comments 09/05 06:28 Traders May Begin Week With Caution The trade reflected the direction of cash for the week, settling lower as positioning ahead of the extended weekend was accomplished. Hogs closed higher on the week, supported by the gain in cutouts good demand through the end of summer. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $230.47 +$0.56* Hogs: Higher Futures: Mixed Lean Equiv: $100.85 +$1.52** *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: Cattle futures adjusted both for the long holiday weekend and to move in line with cash. Some traders continue to not believe cattle prices will decline very much as packers will need to step up soon as they may become short-bought on cattle. Slower summer demand has allowed them to hold back on slaughter and improve margins, but there may come a time they will need to purchase more aggressively. Steady to lower cash last week may carry over as feedlots may need to move cattle as it is costing money to hold for no better cash or lower cash. Boxed beef prices were higher Friday with choice up $0.70 and select up $1.04. The Commitment of Traders report showed fund traders increasing their long positions by 4,321 futures contracts, bringing their net-long positions to 94,715 contracts for live cattle. They increased their net-long positions in feeder cattle by 2,775 contracts, bringing their net-long positions to 14,663.