DTN Early Word Livestock Comments 09/12 06:23

DTN Early Word Livestock Comments 09/12 06:23 Traders Hope For Better Cash Trade Thursday Livestock futures closed higher in nearly all contracts Wednesday. Cattle closed higher after spending some time in negative territory despite fundamental weakness. Hog futures had some unwinding of spreads supporting nearby contracts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $225.46 -$0.98* Hogs: Lower Futures: Lower Lean Equiv: $99.02 -$1.89** *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 spent some time in negative territory Wednesday, but ultimately found the strength to close higher. Traders seemed to lack the conviction to establish long positions as there was uncertainty over the potential for sustained higher prices. The upside price potential may be limited as there were a few cattle sales in the South at $1.00 lower. This may have set the stage for cash trade this week with business expected to increase Thursday. Boxed beef prices showed further weakness with choice down $0.87 and select down $2.63. Feeder cattle showed greater strength, likely due to less trading volume than live cattle futures. Auction prices for various weight categories are mixed. USDA will release the WASDE report Thursday containing their estimates for beef production and prices.