DTN Early Word Livestock Comments 08/30 07:07

DTN Early Word Livestock Comments 08/30 07:07 Hogs May Set Back October and December Live cattle were lower Friday likely from the pressure on the August contract. However, the real disappointment is that live cattle futures have basically lost the entire gain realized from the Cattle on Feed report. Hogs may finally be establishing a higher trend after trading sideways for about two weeks. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $252.59 -1.70* Hogs: Steady Futures: Lower Lean Equiv: $124.14 +0.19** * 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: Another week had been put behind us and although cash cattle traded higher, the $1 gain was far from what was hoped the price would be. August live cattle were under significant pressure as futures had to hold close to cash as Tuesday is the last trading day for the contract. The inability of cash to trade more than $1 higher eliminated the premium that had been in the market. Futures have basically eliminated all of the gains realized after the Cattle on Feed report. This weakness left packers unwilling to pay more than $1 higher. It may be tough for feedlots to squeeze more out of packers this week as it is the week before Labor Day when beef demand may peak. Actually, it may have peaked already as boxed beef prices have been slipping last week. On Friday, choice cuts were down $1.93 and select cuts fell $4.07. Slaughter schedules will be disrupted this weekend, which may leave packers unwilling to be very aggressive with purchases.