DTN Early Word Livestock Comments 10/06 06:21

DTN Early Word Livestock Comments 10/06 06:21 Strong Export Sales Needed for Support Livestock futures were higher across the board Wednesday, fueled by optimism and rebounding from the sell-off that should not have taken place. Cattle are expected to trade higher this week with early indications pointing to that. Hogs rebound as prices needed to correct after the strong cash price. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv $183.21 -$1.06* Hogs: Steady Futures: Higher Lean Equiv: $107.13 +$1.00** * 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: Livestock showed strength even with the Dow significantly lower during the early part of Wednesday. Optimism over higher cash cattle overrode the weakness of financial markets. However, the weakness of the Dow did not continue throughout the day. Traders remain cautious over ongoing demand due to inflation. There was some light cash trade yesterday $1.00 higher. Cash trading is expected to be active Thursday as packers will need to step up to the plate to purchase what they need for the week. So far, feedlots have not been willing to let cattle go at steady prices with last week. Boxed beef did not continue the streak of higher prices and turned lower Wednesday with choice down $0.98 and select down $2.69. There is some apprehension over the level of export sales that will be seen on the report today and the impact it could have on the market.