DTN Early Word Livestock Comments 08/23 06:06

DTN Early Word Livestock Comments 08/23 06:06 Higher Corn Futures May Pressure Cattle Live cattle contracts through December closed lower but held well considering the bearishness of the Cattle on Feed report on Friday. Feeder cattle followed a similar pattern with higher grain prices providing some pressure. Hogs ran out of aggressive selling which allowed futures to trade higher. Packers were aggressive yesterday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $194.68 +$0.21* Hogs: Lower Futures: Mixed Lean Equiv: $125.64 +$0.46** *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 were lower as expected yesterday but held well despite the bearish Cattle on Feed report. The complex might struggle this week as a result of the report and the expectation that packers may not be as aggressive. Feedlots may still be in the driver's seat as show lists are smaller leaving packers with fewer to choose from. Corn futures were higher overnight due to a 3% decrease in crop condition and the first leg of the Pro Farmer crop tour showing variable yields and crop stress. This is expected to put pressure on feeder cattle which will keep pressure on live cattle as well. Boxed beef was slightly higher with choice up $0.24 and select up $0.42. The Commitment of Traders report showed funds as net buyers of 16,964 contracts bringing their net long total to 66,036.