DTN Early Word Livestock Comments 10/04 06:15

DTN Early Word Livestock Comments 10/04 06:15 Livestock Futures Search for Support It was a bad Tuesday for cattle futures as liquidation ran rampant. Heavy selling pushed futures lower, leaving chart gaps on the open in live cattle. Feeder cattle futures lead the way with losses of over $5.00 in most contracts. Hogs were generally lower but kept losses to a minimum. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $220.07 -$1.79* Hogs: Steady Futures: Lower Lean Equiv: $101.68 -$1.43** *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: It certainly looks like cattle reached a top with selling pushing futures lower. Traders are uncertain over demand as interest rates are likely to increase more this year, which may have an impact on consumer demand. A bearish development in the cash market also triggered liquidation. It has been unusual to see cash trade this early in the week, but some light cattle trade developed $1.00 lower Tuesday. The recent pressure on futures may result in feedlots letting go of cattle as they see holding out may not be of any benefit. Boxed beef showed a substantial loss with choice down $3.01 and select down $1.39. Could it be the top is in or is this just a large price correction? The rest of this week will likely indicate what it is. As a result of the weakness in live cattle, feeder cattle are trading lower at auctions with buyers reacting to what is happening with live cattle.