DTN Early Word Livestock Comments 08/26 06:34

DTN Early Word Livestock Comments 08/26 06:34 Futures Remain Choppy The weakness of cattle Wednesday did not spill over into hogs; nor did the strength of hogs spill over into cattle. Cattle were under pressure due to weakness of boxed beef. Hog futures were stronger on their own, not because of cash or cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $253.30 -$0.60* Hogs: Steady Futures: Mixed Lean Equiv: $117.79 -$0.77** * 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: Boxed beef prices seem to have run out of upward momentum as much of the demand for Labor Day has been filled and some demand may have been destroyed due to the rapid rise. Choice cuts declined $0.69 with select cuts down $1.21. This put pressure on cattle futures Wednesday even though the cash market was not thoroughly tested. The anticipation is for cash to move $2 higher this week as cash trade is being pushed to the latter half of the week. Smaller showlists in Texas and Kansas may provide feedlots more leverage. Feeder cattle were under pressure as a result of the pressure on live cattle as well as higher grain prices. Thursday is the last trading day for August feeder cattle.