DTN Early Word Livestock Comments 09/18 06:32

DTN Early Word Livestock Comments 09/18 06:32 Cattle Futures May Take a Breather There is nothing slowing cattle futures down with higher cash trade unfolding to end last week. New contract highs are a common occurrence. Hogs struggled again with traders finding little solid support under the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $224.63 -$1.11* Hogs: Lower Futures: Mixed Lean Equiv: $105.95 -$0.27** *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: Packers had to step up on Friday and pay higher cash to obtain the cattle they needed. The tight supply of cattle leaves feedlots in the driver's seat. April live cattle have nearly reached a long-anticipated $200, which almost makes a person dizzy. However, the market will become accustomed to these higher prices with traders thinking this may be the new normal. Futures were propelled higher Friday as Southern cash cattle traded $3.00 higher and Northern dressed cattle traded $2.00 higher. It will be interesting to see just how far consumers will be stretched before demand is impacted. Boxed beef prices were lower with choice down $0.66 and select down $3.74. Feeder cattle were pushed substantially higher as prices for various weights are very strong. Buyers remain very active and continue to pay higher prices for what is available. The Commitment of Traders report showed funds added 4,925 live cattle futures contracts, increasing their net-long position to 99,692 contracts. They added 2,785 contracts, increasing their net-long positions in feeder cattle to 15,972 contracts.