DTN Early Word Livestock Comments 08/21 06:21

DTN Early Word Livestock Comments 08/21 06:21 TCash Cattle Optimism Erodes The cattle complex imploded Tuesday as traders lost confidence in the cash market week and selling pressure grew due to breaking support. Hogs succumbed to some spillover selling after futures were unable to continue higher. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $230.62 -$0.45* Hogs: Higher Futures: Higher Lean Equiv: $103.72 +$0.45** *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 fell below support Tuesday, triggering further selling and increasing losses. The fear of following a repeat of March may be coming to fruition and may have a greater influence on trading activity. A rebound in futures may be viewed as a selling opportunity. Any hope for cash cattle to trade steady this week has evaporated. Some limited cash trade took place in Nebraska at $3.00 lower than last week. This weakness may increase cash activity Wednesday as feedlots may want to take what they can earlier this week rather than hold out until later and sell for possibly lower prices. Boxed beef prices were lower, adding to the negativity of the complex. Choice cuts were down $0.47 with select down $0.97. Feeder cattle futures continue to make new contract lows.