DTN Early Word Livestock Comments 09/19 06:10

DTN Early Word Livestock Comments 09/19 06:10 Trading Activity May be Slow to Develop Steady to higher cash had already been factored into live cattle futures, leaving little else for traders to anticipate prior to the weekend. Hogs found some strength despite the significant decline of cash as technical trade seemed to be the focus. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $187.09 -$0.98* Hogs: Steady Futures: Mixed Lean Equiv: $114.44 +0.82** *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: For the week, live cattle futures did not change much even with the volatility during the week. Feeder cattle showed significant losses, even though corn futures weakened much of the week. Cash trading steady to $1.00 did not have much impact as it had already been factored in, leaving little for traders to get excited about. It will be an interesting week as boxed beef has not been performing well. On Friday, choice cuts increased $0.06 while select fell $3.30. Traders will also be looking ahead to the Cattle on Feed report to be released Friday. Even though it seems packers have been holding back and there is anticipation they will need to step up their purchases, they may have strategically placed themselves in a position in which they can afford to hold back this week and wait for the movement of corn price as well as the results of the Cattle on Feed report. The Commitment of Traders report showed funds as net buyers of 7,523 contracts, bringing their net-long positions to 67,966.