DTN Early Word Livestock Comments 08/11 06:26

DTN Early Word Livestock Comments 08/11 06:26 Hogs Are Due for a Bounce Cattle were the recipient of hope for higher cash this week while hogs suffered continued liquidation for the opposite reason. Hog futures are oversold while cattle remain in a sideways trading range. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $225.95 +3.53* Hogs: Steady Futures: Mixed Lean Equiv: $129.75 -1.84** * based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: The anticipation of early cattle trade this week has not panned out. Packers are holding in the hopes that feedlots will decide to move some cattle this week at hopefully steady to slightly higher cash. Asking prices are solidly higher while packer's bids were basically nonexistent. Feedlots are holding out and can afford to due to the fact that most are current with marketings. This may push cash trading into Thursday or Friday again. Boxed beef prices soared Tuesday with choice cuts up $5.52 and select cuts gaining $3.80, which is giving feedlots confidence higher cash is attainable. This has also pushed packers into a corner as they need to purchase cattle to supply the strong demand. Live cattle futures pushed up near the highs of the trading range but could not hold those levels into the close without further underlying support.