DTN Early Word Livestock Comments 10/09 06:37

DTN Early Word Livestock Comments 10/09 06:37 Mixed Trade Expected to Begin the Week Livestock futures uncovered some life in both the cattle and hogs on Friday. Cattle futures rejected the lows likely as more of a technical move and Friday short covering rather than fundamental while hogs seemed to be more fundamentally driven. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $220.97 +$2.17* Hogs: Lower Futures: Mixed Lean Equiv: $100.25 -$1.80** *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: Boxed beef prices ended the day higher in both categories with choice up $4.25 and select up $1.01. This was much needed for the complex as boxed beef had been struggling earlier in the week. Traders received some encouragement that maybe demand would begin to improve. The limiting factor on the strength was likely the inability of cash cattle to find further strength in the country. Cash cattle in the South traded $1.00 lower for the week while Northern dressed cattle showed more of a range of $2.00 lower to $1.00 higher. Packers have been able to hold the line on cash the past few weeks and will attempt to do so again this week. They have strategically been working on slaughter to their advantage. The Commitment of Traders report showed fund traders reduced their long live cattle positions by 9,327 contracts, bringing their net long futures positions to 94,426 contracts. Funds reduced their long feeder cattle position by 3,288 contracts to a net long of 8,972 contracts.