DTN Early Word Livestock Comments 08/30 06:03

DTN Early Word Livestock Comments 08/30 06:03 Hopes For Higher Cash Have Dissipated The cattle complex closed lower in all contracts except nearby August. Today is the last trading day for the August contract. Steady to lower cash trade was a disappointment. Hogs were able to defy the weakness of cash to post moderate gains. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $226.34 +$0.37* Hogs: Lower Futures: Lower Lean Equiv: $102.00 +$0.61** *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: Cash cattle trading steady to lower was not welcomed news for the market. There had been hope for at least steady cash which did take place in the South. However, Northern-dressed cattle traded $2.00 lower than last week. This sets the stage for further cash today as feedlots may be unable to improve on those prices. The packers may be able to buy cattle for deferred delivery which will not improve the outlook for cash prices next week. Today is the last trading day for the August live cattle contract. The October contract carries a significant discount to the August, but that discount may remain until traders feel confident cash will find support. Boxed beef prices were mixed with choice up $1.37 and select down $1.44. The September feeder cattle contract is now the front month. There is little reason for futures to trade higher without seeing support in the live cattle complex.