DTN Early Word Opening Livestock 10/29 06:19

DTN Early Word Opening Livestock 10/29 06:19 Continued Bullish Cattle Support Likely Strong underlying support remains well rooted in live cattle futures as traders continue to focus on long-term supply tightness and expectations that beef demand will continue strong through the end of the year. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $145.63 +1.16* Hogs: Lower Futures: Mixed Lean Equiv: $ 80.89 -0.53** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle prices last week increased 40 cents per cwt from the previous week with an average price of $110.13 per cwt. This underlying fundamental support may continue to develop through the end of the month, although no significant cash trade is expected to develop over the next couple of days. With Friday landing in November, it is uncertain just how interested packers will be to get weekly cash cattle trades on the books before the calendar changes. This is likely to be a company-by-company decision, and could determine how aggressive packers get about sourcing cattle during the last two days of the month. Asking prices are still undeveloped, as are bids, but more interest is expected as the week continues. The underlying tone of live cattle futures continues firm with additional strong long-term gains developing Monday, setting fall highs as December contracts closed at $116.60 per cwt. The slow, but steady gains in live cattle have done well for the complex and continue to build firm, underlying support through the market. Tuesday seems to be the day when a market will quickly change directions, if one is seen, creating some uncertainty about continued market support even though the underlying tone of the complex remains strong. A light to moderate price correction would not be shocking given the continued upward motion seen in the complex since early September. Tuesday slaughter runs are expected at 117,000 head.