River Valley MFA  - CLICK - MFA CONNECT

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.