DTN Early Word Livestock Comments 09/20 06:23

DTN Early Word Livestock Comments 09/20 06:23 Mixed Livestock Futures Expected Ahead of Cattle on Feed Report Aggressive buying took place in the cattle complex with feedlots holding out in anticipation that the packers will pay more for cattle this week. Hog futures closed mixed with another day of limited price movement. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $220.26 -$1.26* Hogs: Lower Futures: Mixed Lean Equiv: $100.90 +$0.40** *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 have not yet been traded. This has provided traders with the optimism for higher cash. Feedlots are holding out with the expectation that packers will step up to procure the cattle they need. The delay of cash trading until Friday generally takes place the week of the Cattle on Feed report. The increase in futures adds to the resolve of the feedlot while the continued weakness of boxed beef may limit what packers will pay. Boxed beef prices were lower with choice down $1.82 and select down $1.49. Futures may trade mixed today as traders position themselves ahead of the Cattle on Feed report. The average estimate of cattle on feed on September 1 is 100.7% of a year ago with the range of estimates from 100.1% to 101.3%. August placements are estimated at 98.5% with a range of 93.5% to 102.3%. Cattle marketed in August are estimated at 96.5% with a range of 96.0% to 97.5%.