DTN Early Word Opening Livestock 10/20 06:35

DTN Early Word Opening Livestock 10/20 06:35 Cattle Futures Expected Higher Early Tuesday Follow-through support is expected through the cattle futures market early Tuesday morning. A combination of follow-through buyer support and profit-taking is expected to develop through the morning, leaving some shifting price levels. This could lead to more volatility during the rest of the trading session. By Rick Kment DTN Analyst Cattle: Higher Futures: Steady to 1 HR Live Equiv $144.43 + 1.08* Hogs: Steady to $1 LR Futures: Mixed Lean Equiv $ 93.31 - $0.41** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The ability of nearby and deferred live cattle futures trade to move back to levels not expected yet this summer in the month of October is nothing short of impressive as aggressive triple-digit gains flooded into the market Monday morning. This created underlying support of renewed buyer interest in not only the October and December contracts, but also follow-through interest through all 2016 contract months. The focus through the rest of the week will be important in helping solidify the ability to sustain this market rally. Cash market activity remains quiet at this point, but the expectation is that markets will follow the trend of the previous couple of weeks with higher trade if futures markets are able to hold current levels.