DTN Early Word Livestock Comments 08/26 06:22

DTN Early Word Livestock Comments 08/26 06:22 Cattle Expected to Open Lower Monday Traders were cautious ahead of the Cattle on Feed report and rightly so. Placements were higher than estimated and slightly above the range of estimates while marketings were lower. Hog futures closed higher Friday, finishing out a nice week of gains. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $231.60 +$0.35* Hogs: Lower Futures: Mixed Lean Equiv: $105.16 +$2.55** *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 closed lower for the week Friday as further cash weakness pressured the market. The outlook for this week has not changed with the potential for lower cash again unless boxed beef finds solid support and cattle futures uncover buying interest. The packers have been able to manage slaughter to their favor, which has improved their margins but backed up cattle in the country. The Cattle on Feed report did not provide much to change the current market. On feed as of Aug. 1 was 100.3% compared to the average estimate of 100.0%. Placements in July 1.702 million head or 105.8% compared to a year ago and the average estimate of 104.0%. Marketed in July was 107.7% with the average estimate at 108.2%. Placements were slightly above the range of estimates while marketings were slightly below. This sets the potential for a lower opening due to the bearish implications of the report. Boxed beef prices were mixed on Friday with choice up $1.35 and select down $1.57. The Commitments of Traders report showed funds selling 2,813 live cattle futures reducing their net long positions to 45,265 contracts. They were sellers of 956 feeder cattle contracts increasing their net-short position to 4,445.