DTN Early Word Livestock Comments 08/27 06:13

DTN Early Word Livestock Comments 08/27 06:13 Mixed Futures as Traders Wait for Cash Cattle traded higher shortly after a lower open and remained that way the rest of the day. The Cattle on Feed report has already been factored in and the market corrected. Hog futures tried to close in positive territory but could not accomplish that with cash and cutout pressure. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $230.83 -$0.77* Hogs: Lower Futures: Mixed Lean Equiv: $101.09 -$4.07** *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 rejected the lower opening and traded higher the rest of the day. Traders had positioned themselves ahead of the Cattle on Feed report and traded relative to the perception for the week. Cash is expected to be lower as the packers may not be aggressive. They purchased quite a few cattle for deferred delivery last week leaving them less aggressive this week. Feedlots may decide to sell rather than hold for higher prices that may not materialize. Boxed beef prices were lower with choice down $1.44 and select down $0.27. The weakness of boxed beef does not help the potential for steady or higher cash this week. Feeder cattle at auctions have been bringing lower prices in response to the weakness on the board. This trend may continue in the near term.