DTN Early Word Livestock Comments 08/15 06:19

DTN Early Word Livestock Comments 08/15 06:19 Lower Corn to Support Feeders Livestock futures weakened into the close of last week with little more to generate trading interest. Cash cattle traded higher for the week and limited business left to accomplish. Higher corn price put pressure on feeders. August hogs went off the board with October showing some spread pressure. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $194.59 +$0.58* Hogs: Lower Futures: Mixed Lean Equiv: $129.91 -$1.48** *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: Cattle had a strong week as slaughter was brisk and packers were aggressive. Cash cattle traded from $2.00 to $5.00 higher, depending on the area, adding to the developing bullishness of the market. Even though futures settled back on Friday, the uptrend is intact. Demand remains strong with Labor Day weekend three weeks away. Boxed beef was higher on Friday with choice up $0.27 and select up $2.13. Lower corn futures overnight should provide support to feeder cattle, which could spill over to the live cattle. USDA did estimate higher beef production this year, compared to their previous estimate, increasing production by 68 million pounds while at the same time increasing the average price by $0.80 to $142.10.