DTN Early Word Livestock Comments 08/18 06:20

DTN Early Word Livestock Comments 08/18 06:20 Cash Cattle Expected Higher The livestock complex closed higher, supported by stronger cash. Live cattle did not see much trade due to feedlots holding for higher prices. Hogs gained as cash was higher even after the large increase on Tuesday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $194.59 -$0.80* Hogs: Lower Futures: Mixed Lean Equiv: $126.55 -$2.68** *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: Tightening supplies of cattle will be an ongoing concern as heifer and cow slaughter has been running high for a while with much of this due to the drought in areas. This will show up with lower numbers for some time to come. Packers are concerned over that potential as the year progresses. For now, feedlots are holding together, unwilling to let cattle go at lower prices. This has pushed cash trading off to Thursday. Trade will likely be heavy Thursday as business needs to be done. Feeder cattle continue to show strength with October pushing to a new contract higher with September not far behind. The Cattle on Feed report will be released on Friday. The average estimate for on feed supply is 100.7%, placements 98.5% and marketings 97.1% of a year ago.