DTN Early Word Livestock Comments 10/17 06:11

DTN Early Word Livestock Comments 10/17 06:11 Hogs Futures May Bounce Live cattle futures made a valiant effort to remain in positive territory Monday but were slowly dragged lower by the weakness of feeder cattle. Hogs had a significant price swing, but ended the day under pressure and near the lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.18 +$2.27* Hogs: Higher Futures: Higher Lean Equiv: $98.21 +$0.72** *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 overall fundamentals of the cattle market have not changed much but high prices cure high prices and that may be what has happened. Export sales were substantially reduced last week, and it seems demand for beef has not yet increased as anticipated this month. Boxed beef did show some nice gains Monday with choice of $3.87 and select up $1.71, but traders will need to see some consistent strength to provide the confidence to push cattle futures higher. No bids or offers have been posted but the anticipation is for feedlots to hold for at least steady cash while hoping to receive another $1.00 to $2.00 more. Traders may wait to see this before getting excited about buying futures more aggressively.