DTN Early Word Livestock Comments 10/03 06:15

DTN Early Word Livestock Comments 10/03 06:15 Traders Remain Uncertain of Cash Cattle futures pushed higher early Monday as the market was relieved there was no government shutdown. However, futures could not hold the gains as the market settled back to focus on the fundamentals. Hogs were mixed with nearby contracts lower; December took a beating. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.86 +$1.34* Hogs: Higher Futures: Mixed Lean Equiv: $103.11 -$1.19** *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: Deferred cattle contracts posted greater gains than nearby contracts, but all contracts could not hold the gains made earlier in the day. It seemed like traders were exuberant the government did not shut down, leaving business as usual; but that ran its course as futures settled back. Traders then focused on fundamentals again. Boxed beef prices were higher Monday with choice up $2.30 and select up $0.94, making it a good beginning to the week. Traders will be concerned over the potential for cash this week. Steady-to-lower prices last week put the market in a defensive position. Packers are slowing slaughter, which may have resulted in more cattle being purchased for deferred delivery last week. Feeder cattle held onto more gains but were down from their highs. Buyers are showing more hesitancy at auctions with feeders trading lower.