DTN Early Word Livestock Comments 10/02 06:13

DTN Early Word Livestock Comments 10/02 06:13 Hog Futures are Poised to Renew the Uptrend on Wednesday Live cattle futures closed in positive territory Tuesday, but feeder cattle futures remained under pressure. Feeder cattle may be the anchor limiting upside potential or they will rebound to catch up to live cattle. Hogs found greater support from cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $219.95 +$1.17* Hogs: Higher Futures: Higher Lean Equiv: $102.54 +$0.69** *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: December live cattle closed at the highest level since July 31 Tuesday and a new high for this move. Traders are feeling a little more confident over cash prices this week as further support was seen in boxed beef. Choice cuts increased by $2.09 with select cuts up $0.77. This moved choice back above $300 again. It is too early to tell, but cutouts may begin to trend higher. This, along with stronger futures, will provide the confidence needed for feedlots to hold out for higher prices. That seems a strong possibility as the packers do not have many cattle purchased ahead. Cash trade is not expected Wednesday as solid offers have not yet been established. Feeder cattle traders are not quite as optimistic, remaining less enthusiastic so far this week.