DTN Early Word Livestock Comments 09/08 06:28

DTN Early Word Livestock Comments 09/08 06:28 Cash Cattle Trade Comes Down to the Wire The livestock complex posted green across the screen Thursday with feeder cattle moving to new contract highs again. Limited cash trade in cattle and higher cash for hogs provided support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $228.20 -$1.25* Hogs: Lower Futures: Mixed Lean Equiv: $101.36 -$4.12** *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: There has been very limited cash cattle trade so far this week. Some light trade took place in Nebraska at steady money with last week. Higher futures have provided confidence for feedlots to hold for no less than steady money ... and then some. It appears feedlots may win this week as packers will need to purchase cattle Friday. The offsetting issue is boxed beef prices have weakened as cattle futures have increased. Thursday, choice declined $1.91 with select down $1.44. Granted, packer margins have improved, but that does not mean they are willing to write larger checks. Feeder cattle made new contract highs across the board. Buyers continue to remain aggressive at auctions, looking for animals to put on feed in anticipation of a continued tight market and higher beef prices.