DTN Early Word Livestock Comments 08/14 06:18

DTN Early Word Livestock Comments 08/14 06:18 Cattle Market Waits for Cash Trade to Develop; Hog Futures May See Further Selling Cattle futures were higher Tuesday, holding or extending the gains. However, though futures were higher, traders seemed to lack the conviction for higher cash. Hogs suffered losses in reaction to the previous day's lower cash and cutouts Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.45 +$0.65* Hogs: Higher Futures: Higher Lean Equiv: $106.51 +$0.06** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Traders were more confident in the cattle market Tuesday as boxed beef prices have been showing strength recently. Stronger boxed beef prices may increase the interest of packers to pay no less than steady cash prices this week. That assumption is influencing the futures market ahead of actual cash trade. Feedlots in the South have posted some offers, but otherwise bids or offers have been elusive. The futures market has been struggling to find solid support after the large decline two weeks ago. Live cattle futures have fared better than feeder cattle with contracts moving in a sideways range while feeder futures trend lower. Boxed beef prices were higher Tuesday with choice up $1.10 and select up $0.44. Cash cattle trade may not take place today as packers have a fair amount of cattle purchased ahead and may not be aggressive.