DTN Early Word Livestock Comments 10/16 06:26

DTN Early Word Livestock Comments 10/16 06:26 Futures Price Direction May Be Slow to Develop Even though cash cattle traded higher for the week, futures posted triple-digit losses as traders had the cash market factored in and limited trade showed little to get excited about. Hogs were mixed with spread trading putting pressure on the nearby months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $219.91 -$0.15* Hogs: Higher Futures: Mixed Lean Equiv: $ 97.49 -$1.68** *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: Traders have little interest in putting extra premium in futures as stronger cash this week may be difficult to develop. Packers paid higher prices last week with Northern cattle up $3.00 and Southern cattle $1.00 to $2.00 higher. The strength was not supported by boxed beef prices, which were mostly mixed for the week and mixed on Friday with choice down $0.39 and select up $0.47. It seems demand is not picking up as expected so far this month, which may leave the market on the defensive to some extent. International demand may be impacted by continued high beef prices as weekly export sales showed only 9,000 metric tons (mt) sold, down 32% from the previous week. Mixed prices are being recorded at feeder cattle auctions as some of the earlier exuberance seems to have waned. The Commitment of Traders report showed funds reducing their long positions by 8,266 contracts to a net-long position of 86,170 futures contracts. Feeder cattle positions were reduced 1,917 contracts to 7,055 net long futures positions.