DTN Early Word Livestock Comments 08/19 06:12

DTN Early Word Livestock Comments 08/19 06:12 Renewed Optimism to Provide Support Live cattle and lean hog futures regained the losses of the previous day as traders became more optimistic over price potential. Tightening cattle supplies and current marketings are expected to push futures and cash higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $248.62 +1.72* Hogs: Steady Futures: Higher Lean Equiv: $128.08 +2.49** * 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 cattle complex found support Wednesday as traders turned more optimistic over cash. Some cash trading took place on Wednesday, but it was not on a large scale. However, it has set the tone for higher prices as the week progresses. Cash trades were generally $2.00 higher, which may be the minimum gain for the week with feedlots still holding for higher prices. This should be achieved as boxed beef prices show no sign of slowing down. Choice cuts increased $2.02 with select cuts up $3.03. This should drive packers to bid higher in order to obtain market-ready cattle. Estimates for the Cattle on Feed report on Friday are friendly. The on-feed average estimate on Aug. 1 is 98.3% with a range of 97.7% to 98.8%. Placements are estimated at 93.2% with a range of 90.7% to 95.5%. Marketings for July are estimated at 96.5% with a range of 95.2% to 97.0%.