DTN Early Word Livestock Comments 08/20 06:29

DTN Early Word Livestock Comments 08/20 06:29 Traders Remain Cautious Over Cash Direction The live and feeder cattle contracts diverged Monday, showing little interest from traders to either buy or sell aggressively. The market may remain mixed until direction is seen from cash. Hog futures regained Friday's losses and then some Monday as traders showed renewed strength as optimism returned. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $231.07 -$1.06* Hogs: Higher Futures: Mixed Lean Equiv: $97.09 -$1.58** *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 are uncertain about the direction of cash cattle trade this week, which may keep futures mixed until cash business surfaces. The weakness in cash trade last week was a blow for feedlots. They face the difficult decision of whether to hold in the hope of better prices this week or to sell before further price declines. Cattle numbers are not plentiful, but slower slaughter and current demand leaves supply sufficient. The increased beef imports and heavy cattle weights may limit upside price potential. Boxed beef prices were lower with choice down $1.90 and select down $0.58. Feeder cattle seem to have run their course and may have difficulty moving higher. September could move to test new contract lows.