DTN Early Word Livestock Comments 10/03 06:15

DTN Early Word Livestock Comments 10/03 06:15 Outside Markets Influence Trading Activity Live cattle futures fell back Friday to close at the low end of the range for the week. Feeder cattle took a bath, closing at a new low for the recent downtrend. Hog futures were able to close higher except for front-month October as it could not shake the weakness of cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $181.86 -$1.08* Hogs: Steady Futures: Higher Lean Equiv: $105.43 -$1.45** *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: Cattle closed lower to end the quarter, succumbing to the pressures of the lower stock market and a bullish quarterly stocks report for corn. Cash cattle traded earlier in the week with no further change seen to close the week. The negative implications of the Cattle on Feed report the week before, the weakness of the stock market, and the bullish quarterly stocks report for corn impacted the market, moving prices to the lower end of the trading range established for the week in the October live cattle contract. With the concern over demand due to economic concerns and the continued weakness of boxed beef, cash cattle are not expected to see much, if any, upside this week. Boxed beef was mixed, the choice down $2.33 and select up $0.35. Feeder cattle saw substantial pressure closely related to the bullish Quarterly Grain Stocks report. October futures made a new low for the current trend, keeping the market in a solid downtrend.