DTN Early Word Livestock Comments 10/17 06:21

DTN Early Word Livestock Comments 10/17 06:21 Uncertain Start to Week Even though cash cattle traded higher last week, futures did not reflect the increase, closing slightly lower for the week. International demand is becoming a concern due to reduced exports. Hogs showed the opposite with strong exports and China continuing to be a buyer. December is now the front-month contract. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $182.48 +0.50* Hogs: Lower Futures: Higher Lean Equiv: $109.77 -$1.07** *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: Cash cattle continue to trade in line with prices earlier in the week. Even though cattle in the South traded $1.00 higher with the North trading $2.00 higher, futures did not reflect the gains. Deferred contracts closed lower for the week as traders remained cautious over ongoing demand. Those fears may come to fruition as exports sales have been slowing. Weekly exports of only 13,200 metric tons (mt) were certainly not what the trade wanted to see. The high U.S. dollar may be having an impact on demand from some countries whose currencies have declined considerably. Domestic demand will be the other part of the equation as time moves forward. So far slaughter pace has been strong, and packers have had to be aggressive. Boxed beef was higher on Friday with choice up $0.45 and select up $1.08.