DTN Early Word Livestock Comments 10/06 06:16

DTN Early Word Livestock Comments 10/06 06:16 Traders Wait for Cash Activity Feeder cattle were the bright spot of the cattle complex, posting triple-digit gains, dragging live cattle along with them. Live cattle just could not garner much strength in themselves. Hogs closed lower but rebounded from the lows of the day on trader buying interest. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $215.03 +0.49* Hogs: Steady Futures: Mixed Lean Equiv: $115.29 -4.27** * 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: Even though live cattle could not continue the strength of Monday, the market was supported by a strong increase in boxed beef select cuts of $2.62. It has been quite some time since any strength of this magnitude has been seen. Unfortunately, it was offset to see degree by choice cuts declining $1.47. This may provide some light at the end of the tunnel. Cash will need to trade no less than steady with last week to provide some further support. Cash cattle have not yet traded for the week, giving no indication of direction. There is continued liquidation of cattle from drought areas and the high prices for feed. This keeps the slaughter market supplied as producers are willing to move those cattle no matter what the current price. Some cash trade should develop Wednesday, providing some indication of cash for the week.