DTN Early Word Livestock Comments 10/04 06:09

DTN Early Word Livestock Comments 10/04 06:09 A New Week of Uncertainty Begins It was a fairly uneventful day on Friday as livestock futures coasted into the weekend. Traders had positioned themselves for the end of the month and end of the quarter, leaving little else to do but enjoy the weekend. Cash cattle were steady for the week while underlying hog fundamentals left much to be desired. Robin Schmahl DTN Contributing Analyst It was a fairly uneventful day on Friday as livestock futures coasted into the weekend. Traders had positioned themselves for the end of the month and end of the quarter, leaving little else to do but enjoy the weekend. Cash cattle were steady for the week while underlying hog fundamentals left much to be desired. Cattle: Steady Futures: Mixed Live Equiv: $215.90 -2.25* Hogs: Higher Futures: Mixed Lean Equiv: $120.55 -2.94** * 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: Cattle traded back and forth on Friday, eventually closing mostly lower in numerous months. The cattle complex did not fare well for the week as the overall atmosphere of the complex remained bearish since the Cattle on Feed report. Continued weakness of boxed beef along with weaker futures leaves packers in the defensive position, unwilling to bid higher to obtain the cattle that are ready for the market. Chart support was violated later in the week, increasing the technical weakness of the market. Futures are likely to test the next level of technical support about $1 lower. Lower slaughter levels will back up supplies of market-ready cattle, resulting in higher weights. Boxed beef on Friday fell $2.62 for choice cuts and $4.48 for select cuts. It is unlikely business will be done Monday with possibly no bids or offers. However, it is likely packers will not be aggressive and may lower their bids.