DTN Early Word Livestock Comments 09/03 06:30

DTN Early Word Livestock Comments 09/03 06:30 Livestock Futures May Struggle Tuesday The higher close in the cattle complex Friday was welcomed but may have been due to positioning ahead of the extended weekend rather than from solid support. The October live cattle contract is now the lead month. Hog futures continued to push higher with October narrowing the gap to where August went off the board. Cash was surprisingly higher on Friday. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $226.67 +$0.33* Hogs: Higher Futures: Higher Lean Equiv: $103.31 +$1.31** *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 higher for the week but the gains were limited. The hopes for higher cash and support for boxed beef decreased as the week progressed. Cash cattle traded steady to $1.00 lower in the South depending on the day with Nothern dressed cattle trading $2.00 lower. This is a shorter week for business to be done, which may impact price potential. The initial estimate is from much of a repeat as last week with cash steady to lower. Boxed beef prices were mixed Friday with choice up $0.68 and select down $0.37. This does not provide solid support for the complex. Feeder cattle prices in the country were mixed last week as uncertainty influences the market. The Commitments of Traders report showed funds selling 3,609 live cattle contracts, reducing their net-long positions to 41,656 contracts. Funds were net buyers of 878 feeder cattle contracts, reducing their net-short position to 3,567 contracts.