DTN Early Word Opening Livestock 10/04 06:24

DTN Early Word Opening Livestock 10/04 06:24 Higher Cash Cattle Increase Market Expectations Cash cattle has started to trade over the last two days in the South with prices $2 to $3 per cwt higher than last week. The expectation is that firm cash support in all areas will spark underlying futures gains Friday. By Rick Kment DTN Livestock Analyst Cattle: $2 to $3 Higher Futures: Higher Live Equiv: $136.29 -0.01* Hogs: Higher Futures: Mixed Lean Equiv: $ 80.10 +1.24** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Light trade in Texas at $106 per cwt Thursday is expected to stimulate underlying cash market support through the end of the week. It is still uncertain just how many cattle sold at this point, but it is expected to be enough to set the general trend of higher cash cattle prices, and likely trickle into firming price levels in Kansas and most of the North. Asking prices still remain firm at $108 per cwt live in the South and $175 dressed in the North. Packer interest is expected to improve in all areas through the morning, although it still may be late afternoon until trade develops. Firm underlying support continues in live cattle and feeder cattle futures through the end of the session with active nearby support helping to spark additional commercial interest through the complex. October live cattle futures remain lightly traded and traders have moved into December futures as spot month trade, but prices closing above the August futures on Thursday at $106.80 per cwt is significant as it has broken through significant resistance and moved to a nearly two-month high. The combination of tighter cattle supplies expected during early 2020 and commercial support moving back into the live cattle complex is helping to spark underlying support in the complex.