DTN Early Word Livestock Comments 08/20 06:19

DTN Early Word Livestock Comments 08/20 06:19 Futures May Regain Some Losses Livestock futures seem to be under pressure through no fault of their own. Product prices were higher for both beef and pork. Cash prices were also higher. Outside economic factors caused the pressure. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $250.79 +$2.17* Hogs: Steady Futures: Higher Lean Equiv: $128.87 +$0.79** * 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 not hold or extend the gains of Wednesday. Pressure from outside financial markets and concern over increased restrictions returning due to the resurgence of COVID took front stage. Strength was elusive despite the substantial decline in grain prices. A little more cash trade developed Thursday, but activity still remains light for the week. Trade Thursday was much in line with what has already transpired this week. Trade in the South has been running $1.00 higher than last week at $122 with trade in the North averaging $2.00 higher at $200. Even though trade may come down to the wire again this week, it may be difficult to achieve anything more due to the pattern that has been set. It appears both packers and feedlots may be waiting to see the numbers that will be released on the Cattle of Feed report Friday afternoon before making further decisions.