DTN Early Word Livestock Comments 10/20 06:26

DTN Early Word Livestock Comments 10/20 06:26 Cattle on Feed Report Day Feeder cattle plummeted as support was breached and liquidation took over. Live cattle followed, but not with the same intensity of selling. Hogs floundered after running out of steam earlier in the day. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.97 -$0.05* Hogs: Higher Futures: Mixed Lean Equiv: $ 94.12 -$0.82** *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: The focus was on the liquidation taking place in feeder cattle Thursday. Yes, corn prices were higher, but that would not have put extreme pressure on the market by itself. Liquidation ahead of the Cattle on Feed report likely had much to do with the freefall. Heavy selling was triggered once contracts fell below support. Stops were hit and the market pancaked lower. Traders are nervous over the results of the Cattle on Feed report as placements are expected to be higher, which is somewhat usual for September, but the range of estimates is the concern and just where it will land. Placements are estimated at 101.6% with a range of estimates from 95.9% to 104.8%. I have never seen a range this wide. On feed on Oct. 1 is estimated at 99.8% of a year ago. Marketed in September is estimated at 90.3%. Cash cattle traded higher Thursday with live sales in the North $1.00 higher and dressed sales $2.00 higher on light activity. Boxed beef prices were mixed with choice up $0.26 and select down $0.87.