DTN Early Word Livestock Comments 09/02 06:20

DTN Early Word Livestock Comments 09/02 06:20 Weekly Exports May Set Direction Higher futures rekindled some optimism in traders, but underlying cash and meat prices will need to show support or that optimism will be short-lived. Neither of those looked promising Wednesday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $247.73 -$2.71* Hogs: Steady Futures: Mixed Lean Equiv: $114.09 -$2.47** * 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: Live cattle were finally able to bounce slightly after the selling phase. However, traders were not very aggressive, considering the limited gains. Some cash trading took place Wednesday as buyers and sellers decided on a price. Unfortunately, it was not what was hoped. Trading in Kansas and Texas was $1.00 to $1.50 higher, but this was offset by a dressed price in Nebraska $1.00 lower than last week in light trade. Even though there had been bullish news on the Cattle on Feed report, cash did not really react and futures have eliminated initial gains. The market will now wait to see if cattle numbers will grow tighter or if demand will slow, requiring less cattle to be purchased. Boxed beef fell again Wednesday with choice cuts down $3.66 and select cuts down $4.46. Weekly exports may provide some direction, but it may be temporary as the market focuses on cash and the upcoming holiday weekend.