DTN Early Word Livestock Comments 09/10 06:22

DTN Early Word Livestock Comments 09/10 06:22 Short-Covering May Surface The livestock complex struggled Thursday with only a few nearby live cattle contracts closing higher. Cash cattle trade looks to close the week generally $1 higher. Hogs made a valiant attempt to hold, but weakness slowly permeated contracts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $242.14 -$1.78* Hogs: Steady Futures: Mixed Lean Equiv: $116.13 -$1.70** * 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: Even though some nearby live cattle futures contracts managed to close higher Thursday, the market still has not been able to find solid support. It is Friday with a strong potential for a market bounce after another brutal week. Cash cattle trade is recorded at mostly $1 higher, but trade began to waver in some cases with trades taking place at less than that. Although packer margins are very strong at over $880 per head, they are unwilling to pay more for cattle due to the continued weakness of boxed beef. Choice cuts were down $2.28 with selects cuts down $1.72 Thursday. The Biden administration is going to take a tougher stance on the meat packing industry due to the high prices consumers are spending at the grocery store. It is unclear exactly what this is, or will be, but $1.4 billion is to be spent on pandemic relief to small meat producers and workers. Weekly export sales will be released at 7:30 a.m. CDT Friday but will probably not have much influence on the market.