DTN Early Word Livestock Comments 10/05 06:19

DTN Early Word Livestock Comments 10/05 06:19 Weekly Export Sales May Influence Trading Traders did not know what to do with the cattle market. The potential for lower cash and the recent weakness of boxed beef reduced the willingness to buy back into the market. Hogs could not find much support with spread trading taking place, leaving futures mixed. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $218.33 -$1.74* Hogs: Higher Futures: Mixed Lean Equiv: $101.71 +$0.03** *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: There was hope cattle futures would rebound after the recent swift selloff. However, Wednesday was not that day as futures posted minor gains for live cattle and mixed prices for feeder cattle. Traders were cautious about buying the dip after some cash cattle traded Wednesday in both the North and the South at $1.00 lower. On top of that, boxed beef fell Tuesday and Wednesday. Boxed beef declined $3.31 for choice cuts and $0.72 for select cuts. Feedlots have some hope packers may need more cattle, but the line in the sand has likely been drawn and holding out for higher prices may not accomplish much other than holding cattle over for another week. Lower futures, lower boxed beef, and reduced slaughter will leave packers holding the line. The uncertain economy may leave traders cautious for the time being. Feeder cattle futures had about a $3.00 price swing, finally closing mixed as the higher prices were rejected.