DTN Early Word Opening Livestock 10/30 06:26

DTN Early Word Opening Livestock 10/30 06:26 Continued Strength Expected in Cattle Futures Underlying support in cattle futures continues to slowly develop, leading to expectations of steady to higher cash cattle trade. Hog futures remain uncertain with renewed questions concerning export trade. By Rick Kment DTN Livestock Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv: $147.34 +1.71* Hogs: Lower Futures: Lower Lean Equiv: $ 81.58 +0.69** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Activity is yet to develop in cash cattle trade, but firm support in futures and wholesale beef values help solidify expectations of higher cash prices. Although asking prices are starting to pop up, feedlot managers remain hesitant to price cattle too early in the week in the event continued underlying support in the complex leaves revenue on the table once the dust clears. Additional bids and asking prices should develop through the morning Wednesday, although active trade may not be seen until sometime Thursday or Friday. Given the fact that cash cattle prices have steadily moved higher each of the last six weeks, a continuation of that trend higher is expected, especially with the help of active boxed beef gains through the last several days. Futures trade is expected mixed to generally higher with the generally bullish tone through the live cattle complex helping to spark additional underlying support. Even though prices were not able to secure active gains Tuesday, the continued steady support developing in the complex adds to the "slow but steady" shift higher seen over the last several weeks. October futures are nearing expiration, which could spark some additional front-month volatility, but traders continue to focus on December contracts reaching for the $117 per cwt levels through the end of the month. Wednesday slaughter runs are expected at 118,000 head.