DTN Early Word Livestock Comments 10/05 06:20

DTN Early Word Livestock Comments 10/05 06:20 Hog Futures May Struggle to Find Buyers Livestock futures could not hold early gains as more aggressive selling pressure surfaced as Tuesday progressed. Some pressure on the cattle complex could be explained, but the substantial selling that erupted in hogs was a mystery. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv $184.27 +$1.17* Hogs: Higher Futures: Higher Lean Equiv: $106.13 -$1.64** * 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 financial markets had a banner day with the stock market closing 825 points higher Tuesday. However, that was not enough to maintain early gains in livestock futures. Boxed beef certainly was positive with choice up $2.10 and select up $0.60. Cash cattle have not yet traded, leaving uncertainty over cash potential. The general idea is that cash will trade higher as slaughter pace continues to run strong and packers need to purchase for the week and to try and keep ahead of the market by continuing to purchase some for differed delivery. Feeder cattle reacted negatively to a supported grain market.