DTN Early Word Livestock Comments 10/27 06:21

DTN Early Word Livestock Comments 10/27 06:21 Futures May Struggle Ahead of Weekend Cattle futures just could not get it going Thursday. Further cash trade taking place lower than last week dispelled hope for any strength. Hogs were able to find buying interest, but that might be short-lived as both cash and cutouts moved lower. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.64 -$0.74* Hogs: Lower Futures: Lower Lean Equiv: $ 92.97 -$1.86** *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: Lower cash cattle trade did not provide support to cattle futures Thursday. In early trading, there was hope that maybe packers would need to bid up to obtain cattle, but feedlots decided to let them go rather than hold on another week for likely no benefit. Northern dressed cattle traded at $290, where they have been so far this week, and $3 to $4 lower. Southern cattle traded at $183 and $1 to $2 lower. Not much change is expected Friday as the rest of the trades should fall in line with the week. Boxed beef prices declined with choice down $0.65 and select down $1.97. Weekly export sales totaled 17,400 mt increasing from the previous week. September's inventory of beef in cold storage totaled 420.2 million pounds, which was 20% below a year ago but supply increased 6% from August. Feeder cattle suffered triple-digit losses as the bloom has come out of the market. It may be difficult for feeder cattle futures to regain losses anytime soon.