DTN Early Word Livestock Comments 08/15 06:25

DTN Early Word Livestock Comments 08/15 06:25 Traders Remain Optimistic for Steady to Higher Cash Thursday The livestock complex found support Wednesday, posting mostly triple-digit gains. Traders expect cash cattle to trade no worse than steady with futures adjusting closer to that price. Hog futures showed strong gains with October narrowing the price gap to the expired August contract. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.42 -$1.03* Hogs: Lower Futures: Mixed Lean Equiv: $105.49 -$1.02** *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: Cattle futures increased as traders felt more confident over the potential for steady and even higher cash trade. The strength of boxed beef fueled that idea, but that optimism may be trimmed a bit due to boxed beef prices slipping lower on Wednesday. Choice cuts declined $2.05 with select down $0.11. That may not be enough to indicate lower cash but it may indicate there could be a limit to upside potential. Some support to the market might have come from the positive Consumer Price Index (CPI) at 2.9% compared to last year with the core CPI at 3.2% as expected. This provided a better chance Feds will cut interest rates next month. Feeder cattle remain in strong demand with active buying interest at higher prices at auctions.