DTN Early Word Livestock Comments 10/10 06:18

DTN Early Word Livestock Comments 10/10 06:18 Futures May Rebound Cattle futures settled back Monday after the short-covering rally into the weekend. Traders need further confirmation of support under the market to buy back in with confidence. Hogs suffered a similar fate, but with lesser losses. This seemed to be a reaction after two days of strong gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $222.03 +$1.06* Hogs: Steady Futures: Higher Lean Equiv: $102.09 +$1.84** *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: Live cattle opened lower and just could not regain their footing as there was just too much uncertainty in the market. Generally lower cash last week and the uncertainty of the economic environment kept traders cautious. Even though there is a question over the ability of feedlots to regain the upper hand in the cash market, it seems demand may be improving. Boxed beef closed higher with choice gaining $1.41 and select up $1.72. Packers are gaining on their margins, and they will want to protect that gain. They were able to purchase cattle ahead again last week with 20% for deferred delivery. This does not necessarily mean cash will be lower, but it may leave them less aggressive in their need to purchase. Feeder cattle seem to be struggling more as they had gained more in relation to live cattle. Buyers have pulled back a bit at auctions due to the weakness of futures.