DTN Early Word Livestock Comments 10/01 06:16

DTN Early Word Livestock Comments 10/01 06:16 Cattle Traders Search For Direction Tuesday Live cattle posted minor gains Monday, but bullish news was sparse after the increase in cattle prices last week. Feeder cattle could not find support, closing with triple-digit losses in later contracts. Hog futures closed mixed with traders trying to decide whether to support the market or let it slip lower. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $218.78 +1.20* Hogs: Higher Futures: Higher Lean Equiv: $101.85 +$0.09** *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: It appears the higher prices paid for cattle last week will not be sufficient to generate strong buying interest in futures this week unless boxed beef prices turn higher and cash trades higher. Boxed beef was higher to begin the week with choice up $1.39 and select up $2.45. This is a good start for the week, but it needs to continue. Feedlots will set their sights on higher cash this week and may hold out due to the packers not having purchased many cattle for deffered delivery. The packers will try their hardest to pay no more than steady money and may limit slaughter to try and boost boxed beef and limit cattle purchases.