DTN Early Word Livestock Comments 09/04 06:23

DTN Early Word Livestock Comments 09/04 06:23 Livestock Futures May Show Further Strength Wednesday Cattle futures showed buying interest pushing some contracts to double-digit gains. The higher boxed beef prices provided some hope for at least steady cash this week. Hog futures continued the trend with new highs as buying interest remained strong. Lower prices initially were viewed as a buying opportunity. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $228.31 +$1.64* Hogs: Higher Futures: Higher Lean Equiv: $104.90 +$1.59** *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: Traders were a little cautious at the beginning Tuesday, uncertain of weekend demand and whether the market could provide some hope for strength. Boxed beef prices on the morning report showed some strong prices, indicating demand was good and that provided some hope the packers may be willing to pay as least steady money for cattle this week. It is uncertain whether feedlots will want to hold out this week or will need to move cattle. Closing boxed beef prices on Tuesday showed choice cuts up $1.33 and select up $4.29. Traders will need to see signs of continued strength for boxed beef before being aggressive buyers in the futures market. Feeder cattle followed the strength of live cattle anticipating an increase in beef demand would increase the buying interest for feeder cattle.