DTN Early Word Livestock Comments 10/13 06:17

DTN Early Word Livestock Comments 10/13 06:17 Cash Cattle to Trade Today The livestock complex was generally supported yesterday. Cattle did not feel much pressure from corn and cash still had not yet traded for the week with feedlots determined to receive higher prices. Hogs found support from another day of higher cash and supportive cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv $181.73 +0.25* Hogs: Lower Futures: Mixed Lean Equiv: $111.71 +$0.79** * 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: Nearby live cattle futures poked higher but could not maintain the gains through the end of the day. Cash did not trade as feedlots seem determined to hold for higher prices. The World Agricultural Supply and Demand report showed estimates for a higher average price this year at $143.15 while the estimate for next year remained unchanged at $154.00 but over $10.00 higher than this year. Cattle numbers are tightening due to drought, high feed prices and strong slaughter. The ultimate driver of the market will be demand. So far, demand has been holding well and will need to remain that way for these estimates to come to fruition. Cash is expected to trade today with little from yesterday's market providing packers with leverage. Boxed beef was mixed with choice down $0.09 and select up $1.41. Weekly export sales may provide some early direction with the focus then switching to cash prices.