DTN Early Word Livestock Comments 08/17 06:26

DTN Early Word Livestock Comments 08/17 06:26 Livestock Futures May See Limited Gains Cattle were somewhat directionless as there was no underlying information to spark any selling or buying interest. Hogs defied the weakness of cash and cutouts to post strong gains. The large discount to cash had part to play in the strength. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $242.08 +3.63* Hogs: Lower Futures: Higher Lean Equiv: $126.82 -6.33** * 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: There was hope packers needed to be more aggressive this week with higher bids surfacing as they want to take advantage of escalating boxed beef prices. That was not the case as nothing happened except for the distribution of showlists. Those showlists were mixed with numbers higher in Kansas and Nebraska/Colorado with Texas showing smaller numbers. It is doubtful cash trade will wait until late in the week, but the resolve of both feedlots and packers will be tested this week. August and September live cattle futures were higher but continue to remain in the sideways range. Boxed beef prices increased substantially again with choice cuts up $4.97 and select cuts up $5.53. Dressed cattle weights increased a pound to an average of 818 pounds last week compared to 817 pounds the previous week. This compares to 836 pounds a year ago. The Commitment of Traders report showed funds as net buyers of 906 contracts bringing their net-long positions to 68,812.