DTN Early Word Livestock Comments 09/16 06:10

DTN Early Word Livestock Comments 09/16 06:10 Choppy Livestock Trading Activity May Continue Livestock traders just could not find anything to get excited about on Friday. Live cattle closed mixed while feeder cattle were lower. Hog futures followed a similar pattern with limited fundamental news to move the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $224.20 -$1.43* Hogs: Lower Futures: Mixed Lean Equiv: $99.99 -$0.30** *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 traded steady last week which may provide some optimism to begin the week. Maybe the weakness of cash has run its course, and stability will return to the market. However, the continued weakness of boxed beef is a concern. Prices were lower on Friday with choice down $2.27 and select down $1.47. If boxed beef shows further weakness during the week, it is doubtful that packers will pay more for cattle and a further reduction of slaughter will be seen. Cattle continue to be purchased for deferred delivery keeping packers from having to purchase cattle aggressively to fill slaughter. The feedlots will try for nothing less than steady money again this week. The Commitment of Traders report showed fund traders added 1,659 futures contracts in live cattle to increase their net long position to 44,322. Fund traders were net sellers of 1,346 feeder cattle futures contracts moving their net short position to 2,608 contracts.