DTN Early Word Livestock Comments 10/30 06:19

DTN Early Word Livestock Comments 10/30 06:19 Cattle Contracts May See Further Pressure Wednesday Cattle futures closed lower Tuesday and hog futures closed higher. There was little fundamental reason for cattle to be under pressure other than the weakness of boxed beef. Hogs continue to enjoy good demand and packer aggressiveness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.93 -$2.06* Hogs: Higher Futures: Mixed Lean Equiv: $106.96 -$0.88** *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 tried to push through resistance but selling pressure pushed futures lower Tuesday. This could be the beginning of a price correction as further weakness Wednesday could trigger further liquidation. Cash cattle did not trade Tuesday and are not expected to trade Wednesday. The uncertainty of demand and the recent weakness of boxed beef have traders anticipating no better than steady cash this week. Boxed beef was lower Tuesday with choice down $2.89 and select down $2.22. Feedlots may be more interested in selling even at lower prices if further selling occurs in cattle futures Wednesday or Thursday. Feeder cattle took the weakness more personally with contracts posting greater losses despite good demand for cattle and calves in the country.