DTN Early Word Livestock Comments 09/27 06:12

DTN Early Word Livestock Comments 09/27 06:12 Rebound Likely, But May Be Limited The livestock complex felt the pressure from the outside markets Monday regardless of any positive fundamentals. Higher cattle futures did not last long as selling erupted, permeating throughout the contracts. Hogs fell out of bed with prices plummeting below chart support without blinking an eye. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $184.50 +$0.46* Hogs: Higher Futures: Higher Lean Equiv: $109.54 +$0.53** *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: The continued meltdown of the financial markets spilled over into commodities with prices lower across the board. A recession is looming, and traders were afraid of the impact on markets. Cattle spent some time in positive territory but retreated as pressure continued to build. Cash cattle did not trade as expected, but it may be difficult for feedlots to achieve higher cash this week due to the recent circumstances. The slightly negative Cattle on Feed report, along with the potential for lower demand as consumers grapple with higher prices, may increase the resolve of packers to hold or reduce bids. Boxed beef was mixed Monday with Choice down $0.79 and Select up $4.04. With stock futures higher overnight, cattle may see a bounce.