DTN Early Word Livestock Comments 10/25 06:20

DTN Early Word Livestock Comments 10/25 06:20 Livestock Futures May Flounder Cattle just could not rally back Tuesday, even though they tried. Short-covering took place without new buying interest. Hog futures made new contract lows again as packers pulled back on bids. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $224.27 +$1.35* Hogs: Lower Futures: Mixed Lean Equiv: $ 93.83 -$1.96** *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: Cattle tried to rally back somewhat early Tuesday, opening higher and then moving to triple-digit gains. Mostly short-covering took place as some traders banked profits after the large decline. Once that ran its course, futures fell back resulting in a mixed close. October live cattle and October feeder cattle closed higher as they need to converge. The last day to trade October feeder cattle is Thursday with the last day for October live cattle being Tuesday. Some cattle have already traded this week as the drop in futures triggered some cattle sales early with prices $1 to $2 lower. Some cattle owners fear holding for higher prices may only result in yet lower prices. Boxed beef was higher with choice up $1.44 and select up $2.98. That may not provide much support given the current negativity in the market. Buyers of feeder cattle have pulled back and are purchasing cattle at lower prices as the price outlook for fat cattle does look quite as rosy as it was a few weeks ago.