DTN Early Word Livestock Comments 09/18 06:15

DTN Early Word Livestock Comments 09/18 06:15 Renewed Optimism May Support Futures Traders did not wait for cash cattle to trade and pushed futures higher. The expectations of at least steady cash increased the desire to move futures closer to cash. Hog futures broke out to the upside exceeding Tuesday's high and potentially resuming the uptrend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.29 -$0.31* Hogs: Lower Futures: Mixed Lean Equiv: $101.09 +$0.78** *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 did not want to wait around to see what cash would do and bought futures aggressively. It seems they wanted to reduce some of the discount the market is holding to cash and felt comfortable buying even though cash may trade steady this week. The increase was not enough to change the trend, but it provides hope for further upside potential. Boxed beef prices did not provide much support with prices mixed with choice down $0.66 and select up $0.08. The upcoming Cattle on Feed report and the potential for steady cash trade may limit upside price potential. Feeder cattle follow the strength of live cattle as usual. There was little else to move the market.