DTN Early Word Livestock Comments 09/16 06:32

DTN Early Word Livestock Comments 09/16 06:32 Livestock Futures Swim Against the Current The rebound of cattle was short-lived as selling pressure on feeder cattle pulled live cattle slightly lower. Steady to lower cash also had an impact. Hogs saw spread trading with October the beneficiary of buying, unsupported by cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $233.33 -$2.92* Hogs: Lower Futures: Mixed Lean Equiv: $112.96 +$0.50** * 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 futures initially showed some follow-though from Tuesday, but such was not the case for feeder cattle. Live cattle futures came under pressure due to steady-to-lower cash trade. Cash trade in the South was steady with last week while trade in the North was generally $1 lower. This, along with boxed beef prices continuing to fall, does not bode well for a significant rebound of futures. Boxed beef was down sharply with choice cuts down $3.07 and select cuts down $6.73. Weekly export sales will be released Thursday morning, and it will be interesting to see if China is a significant buyer. The resumption of beef trade between Brazil and China was expected soon, but that has been delayed due to continued disagreements. China banned trade with Brazil earlier due to two cases of mad cow disease.