DTN Early Word Livestock Comments 08/19 06:23

DTN Early Word Livestock Comments 08/19 06:23 Livestock Traders Turn Bearish Livestock futures closed under pressure Friday as the cash market did not provide support. Cash cattle traded lower at the levels indicated earlier in the week. Hogs showed lower cash trade with weakness in cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $232.13 +$0.37* Hogs: Lower Futures: Mixed Lean Equiv: $104.85 -$1.20** *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: Live cattle futures plummeted Friday, nearly eliminating the gains of the past two weeks. The weakness of cash trade last week does not provide much hope for cash this week. Those feedlots holding out for higher prices for the past two weeks are now staring at possibly lower prices offsetting any gains they may have anticipated due to lower feed prices. This has happened before and may result in further selling as panic sets in and selling increases before prices fall much further. Boxed beef was higher with choice up $0.51 and select up $0.56, but that may not have much influence on the market. Further weakness and we could see a similar pattern as March and early April. The Commitments of Traders report showed funds selling 10,270 live cattle futures contracts, reducing their net-long positions to 48,078 contracts. Funds sold 2,156 feeder cattle futures increasing their net short futures to 3,489 contracts.