DTN Early Word Livestock Comments 10/18 06:32

DTN Early Word Livestock Comments 10/18 06:32 Smithfield to Close Pork Facility Cattle futures tried to push higher Tuesday but could not hold early gains into the close. Higher cash is already factored into the market. Hog futures had a large price swing, but either challenged or made new contract lows by the close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $222.72 +$0.54* Hogs: Lower Futures: Mixed Lean Equiv: $ 96.54 -$1.67** *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: With higher cash already factored into cattle futures, it may be difficult to generate much more upside unless packers become more aggressive. Some light cash trading took place in Nebraska at $293, which is $1.00 higher than last week. But the limited volume may not set the trend for the week. However, optimism might improve as boxed beef was higher for the second day with choice up $0.47 and select up $1.43. Packers may need to step up again this week if demand improves. It may be a little early, but traders will focus on the upcoming Cattle on Feed report on Friday. But with the release of the estimates, traders may be more apprehensive over this report. On-feed numbers on Oct. 1 are estimated at 99.8% of a year ago. Marketed in September is estimated at 90.3%. The concern of traders will be the placement number, estimated at 101.6%. The concern is not that placements may be higher, but that there is a huge variation with the range of estimates from 95.9% to 104.8%.