DTN Early Word Livestock Comments 08/18 06:27

DTN Early Word Livestock Comments 08/18 06:27 Mixed Trading Anticipated The livestock complex could not find enough support to hold futures in positive territory. The Cattle on Feed report Friday may keep cattle futures price movement limited. Weaker pork cutouts may keep pressure on the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $246.90 +4.82* Hogs: Steady Futures: Mixed Lean Equiv: $125.59 -1.23** * 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: Cattle futures could do nothing but slide lower as traders were disappointed with limited trading so far this week. There were reports of some cattle traded in Nebraska $2.00 to $3.00 higher, but it was not a solid representation of the overall market. Packers and feedlots remain at a standoff with continued surging boxed beef prices increasing the resolve of feedlots to hold for higher prices. Packers see huge profits, but anticipate the days are numbered for surging boxed beef prices. However, even if boxed beef prices decline, their profits will continue to remain large as a result of the dramatic increase over the past few weeks. Tuesday, boxed beef prices jumped with choice cuts up %8.26 and select cuts up $3.22. Yet, packers are still not stepping up to the plate and raise bids. One would think some cash business would be done Wednesday, but with the Cattle on Feed report being released on Friday, cash trading may be erratic and possibly late.