DTN Early Word Livestock Comments 08/02 06:20

DTN Early Word Livestock Comments 08/02 06:20 Lackluster Trade Expected Friday Live cattle futures were able to manage a slightly higher close last week, but the same could not be said for feeder cattle and hogs. Packers may not be willing to increase bids early in the week until they see early demand and the direction of futures. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $206.72 +2.27* Hogs: Lower Futures: Higher Lean Equiv: $130.70 +0.02** * 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: Boxed beef prices soared last week as demand is picking up ahead of Labor Day. However, that did not translate into stronger cash price other than $1.00 higher cash in the South. The volume of cattle traded was light, indicating packers already had sufficient numbers already on hand. It would seem that increasing demand would require packers to increase their need for cattle. We may see this take place this week as packers may need to start being more aggressive. They may have cattle already on the books, but they will also need to look ahead and not wait until their supply has dwindled before stepping up. As usual, the only activity likely to take place Monday is the distribution of showlists. China has become a significant importer of beef. Total commitments this year are already 119,000 metric tons compared to 15,000 metric tons last year for the same time.