DTN Early Word Livestock Comments 10/19 06:19

DTN Early Word Livestock Comments 10/19 06:19 Outside Markets Support Futures Cattle showed strong gains again Tuesday as the prospect for higher cash looks to be a reality. Feedlots are holding the line with some higher bids being passed Tuesday. Feeders found more strength in response to lower corn prices. Hogs continued to show incredible strength as packers were aggressively bidding for hogs. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $185.28 +$1.66* Hogs: Higher Futures: Higher Lean Equiv: $110.58 -$0.83** *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: Feedlots are more confident they will be able to see more than $1.00 higher cash this week. Packers hoped to have some help from outside market pressure but that has not happened. Some higher bids were passed Tuesday, leaving no business taking place. It is likely not much cash activity will take place Wednesday. But the longer it takes, the higher the cash potential. With a continued strong slaughter pace, packers need to remain aggressive by purchasing not only for immediate needs but also continue to purchase ahead. Boxed beef prices closed higher Tuesday with choice up $2.64 and select up $1.67. October live cattle futures made a new contract high. Feeder cattle futures are trying desperately to trend higher with another day of strength needed to increase the confidence of traders to buy into the market.