DTN Early Word Livestock Comments 09/22 06:15

DTN Early Word Livestock Comments 09/22 06:15 Livestock Futures May Continue to Struggle Live cattle futures tried to post gains but eventually succumbed to selling pressure. Between the interest rate hike and the upcoming Cattle on Feed report, there was little to maintain support. Hogs turned tail, unable to maintain the uptrend in the face of significant cutout losses. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $185.47 -$1.45* Hogs: Steady Futures: Lower Lean Equiv: $108.40 -$4.60** *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 tried their best at holding onto positive territory, but futures succumbed to selling pressure, pushing prices into negative territory. The Fed raising interest rates by 75 basis points may have been one reason for the pressure. However, the market had known this was going to happen and was likely prepared for it already. However, it seems the actual rate increase and the impact it could have on demand along with the upcoming Cattle on Feed report put pressure on the market. The fate of the cash market will be revealed Thursday as trading should take place. Expectations are for higher cash, but the extent of the gain is uncertain. However, continued weakness of boxed beef makes cash strength uncertain. Choice cuts were down $2.51 and select down $1.09. Weekly export sales Thursday morning will indicate the level of international demand.