DTN Early Word Livestock Comments 10/23 06:20

DTN Early Word Livestock Comments 10/23 06:20 Negative Beginning to Week Expected Cattle continued to fall ahead of and following the Cattle on Feed report as traders remained concerned over the outcome. Feeder cattle again lead the weakness, finishing a brutal week. Hogs fell to new contract lows as stops were again triggered and selling erupted. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.90 +$0.93* Hogs: Higher Futures: Mixed Lean Equiv: $ 95.21 +$1.09** *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 selling pressure last week was not the result of lower cash, as cash was $2.00 higher in the North and $1.00 to $2.00 higher in the South. That had little impact on trading as the emphasis was the Cattle on Feed report and the wide estimates for placements that increased uncertainty. Feeder cattle fell dramatically ahead of the report with the November contract down $9.35 for the week with $5.27 of that eliminated Thursday and Friday. This closed a chart gap that had remained from June 26. The Cattle on Feed report was bearish with on-feed numbers 1.2% above the average trade estimate at 101.0%. Placements were at 106%, up 4.4%, above the estimate and above the top end of the range. Marketings were slightly positive at 89.0%, 1.2% below the average estimate. It appears the highs will not be revisited again. Boxed beef prices were higher Friday with choice up $1.26 and select up $1.22. The Commitment of Traders report showed funds selling 2,753 contracts, bringing their net-long futures position to 83,417. Feeder cattle had a decrease of 615 long positions, bringing their net-long positions to 6,440 contracts.