DTN Early Word Livestock Comments 10/04 06:10

DTN Early Word Livestock Comments 10/04 06:10 Cash Cattle Trade Waits to End of Week Live cattle stepped back Thursday, even though cash cattle did not trade. Futures already have a gain in the cash cattle price factored in. Hog futures held Thursday with some spread-trading taking place, which put pressure on the nearby months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $219.34 -$0.14* Hogs: Higher Futures: Mixed Lean Equiv: $100.82 -$0.22** *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: Traders were cautious about the direction of cash Thursday, resulting in some selling pressure. Cash cattle did not trade with business being pushed off until the end of the week. It certainly looks like packers will need to increase bids to purchase cattle as feedlots are determined to receive higher prices or hold them over to next week. Futures already have higher cash factored with the decline of nearby months the result of nervous profit-taking. It seems cattle will trade higher this week but the extent is uncertain. There is renewed concern over demand as boxed beef prices were again lower. Choice cuts were down $0.01 with select cuts down $0.64. Feeder cattle futures closed with gains in most contracts as strong demand for feeder cattle and calves remains. The weakness of corn prices may have had an impact as well.