DTN Early Word Livestock Comments 10/15 06:22

DTN Early Word Livestock Comments 10/15 06:22 Traders Uncertain of Further Strength Nearby cattle contracts closed Monday with minor losses with deferred contracts posting gains. Traders are optimistic but may remain cautious ahead of cash trade. Hogs took it on the chin reversing the gains of Friday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $227.23 +$1.12* Hogs: Higher Futures: Mixed Lean Equiv: $100.97 +$0.50** *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: Cattle futures were in limbo Monday as traders spent the day assessing the market's potential this week. The weakness of grain futures provided some support as feed prices are expected to remain reasonable. This may remove some urgency to move cattle quickly this week, allowing feedlots to hold for no less than steady cash and hopefully higher prices as demand for beef seems to be improving. Boxed beef was higher Monday with choice up $2.10 and select up $0.38. The packers have been holding back on slaughter to improve margins, but higher beef demand needs to be satisfied. Lower feed prices and tighter supplies of cattle leave feedlots with better leverage. Higher cattle weights are not a problem in the current market environment.