DTN Early Word Livestock Comments 09/13 06:31

DTN Early Word Livestock Comments 09/13 06:31 Further Weakness Expected There appears to be no bottom in the livestock markets. A concern over declining demand has gripped the market and will not let go. Technical support continues to be violated. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $238.97 -3.17* Hogs: Lower Futures: Mixed Lean Equiv: $112.36 -3.77** * 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: It sounds like a broken record in the cattle complex as futures make an attempt to rally each day only to make lower lows. December live cattle futures declined $3.70 for the week and have fallen $9.18 since Aug. 24. There were 11 of the 12 trading days posting lower lows. Another level of technical support was again broken on Friday. Cash business was not quite as active as had been anticipated last week, but prices average about $1 higher. Cash activity may surface earlier this week, but the combination of declining futures and falling boxed beef prices may not support higher cash trade. Choice cuts fell $5.36 with select cuts down $3.08 on Friday. USDA reduced their estimate for per capita consumption of beef from 58.6 pounds in August to a current estimated of 58.3 pounds on the World Agricultural Supply and Demand report released Friday. The estimate for next year was reduced from 56.7 pounds to 56.5 pounds.