DTN Early Word Livestock Comments 09/21 06:08

DTN Early Word Livestock Comments 09/21 06:08 Live Cattle Poised to Make New Contract Highs Live cattle closed mixed Tuesday with only October showing a solid gain. Traders are friendly but cautious. Feeder cattle fell back as corn futures pushed higher. Hog futures chopped around, unable to maintain the highs with October lower on light spread trading. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $186.92 -$0.17* Hogs: Steady Futures: Higher Lean Equiv: $113.23 -$0.70** *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 seem intent on moving to new contract highs. With feedlots looking for higher cash this week, any gains could push October and December to new contract highs. February accomplished that task Tuesday but fell back significantly. The Cattle on Feed report will hang over the market, keeping traders cautious. The last number of reports held bearish surprises in the placement category, leaving many wondering if the same will be true again. On feed numbers as of Sept. 1 are estimated at 100% of a year agio. Placements are expected at 98.5% with marketings at 106%. Boxed beef was mixed Tuesday with choice down $0.81 and select up $1.34. Feeder cattle could not hold up under the significant gains of corn futures. Technically, this confirms a head-and-shoulders top formation with the lower close.