DTN Early Word Livestock Comments 09/25 06:36

DTN Early Word Livestock Comments 09/25 06:36 Traders Begin to Position Ahead of Hogs and Pigs Report Live cattle and hog futures followed a similar pattern Tuesday with front-month October posting a slight decline while the rest of the contracts posted double-digit gains. Feeder cattle showed the opposite with the October contract posting a strong gain. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.16 -$0.11* Hogs: Steady Futures: Higher Lean Equiv: $100.01 -$0.18** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 futures were able to hold recent gains Tuesday. Last week, the neutral Cattle on Feed report and higher cash trade provided confidence to traders that higher prices may continue to unfold. The drawback may be the uncertainty of boxed beef prices. Boxed beef on Tuesday finished the day mixed with choice up $0.08 and select down $0.92. The packers have reduced chain speed to improve margins, but that has not helped very much. Bids or offers have not been posted so far this week and feedlots may want to see if Wednesday will show higher futures, giving them confidence to hold for higher prices.