DTN Early Word Livestock Comments 08/28 06:23

DTN Early Word Livestock Comments 08/28 06:23 Higher Cattle Futures Leave Feedlots Hopeful Traders were aggressive buyers in the livestock futures Tuesday. Cattle continued to correct from being oversold. Some positive technical indicators also supported the buying interest. Hogs also seem to have found some technical buying support, which will hopefully be followed by fundamental support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $228.83 -$0.77* Hogs: Higher Futures: Mixed Lean Equiv: $102.16 +1.07** *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: The buying interest in cattle futures may not come from expectations for cash to trade higher but is supported by technical trading. The gain in futures over the past two days may provide some confidence to feedlots to hold out until later in the week, hoping that the higher board prices may turn the packers more aggressive with their purchases. However, they may not need to be aggressive as they have a significant amount of cattle purchased for deferred delivery. Technical traders see some indicators that have triggered some buying interest for the short term which may run its course if not supported fundamentally. Boxed beef prices were mixed on Tuesday with choice down $3.98 and select up $0.06. Thursday is the last trading day for August feeder cattle with Friday the last trading day for August live cattle.