DTN Early Word Livestock Comments 10/30 06:20

DTN Early Word Livestock Comments 10/30 06:20 Mixed Trade to Begin Week On Friday, cattle opened higher and closed significantly higher. Cash cattle showed a bit more strength to round out the week, providing greater optimism. Hogs extended their gains of the week, seemingly more from technical buying than fundamental. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.93 +$0.29* Hogs: Steady Futures: Lower Lean Equiv: $ 93.66 +$0.69** *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: Cash cattle showed a bit more strength by the end of the week compared to earlier in the week. This provided traders with more confidence to buy into the market. Southern trade closed the week about steady with the previous week, as packers needed to step up to procure needed head. Northern dressed cattle average about $4 lower. It was a victory considering the recent fall of futures. The December live cattle contract regained 50% of its loss over the past two weeks. The October live cattle contract goes off the board Tuesday with December then being the lead month. Traders may be more cautious to begin the week as they assess beef demand and show lists. Boxed beef prices were higher with choice up $0.72 and select up $0.43. Feeder cattle did not see quite the strength, which is a little unusual as feeder cattle generally lead the charge. The Commitment of Traders report showed funds sold 20,714 live cattle contracts, bringing their net-long position to 62,703 contracts. Funds sold 3,104 feeder cattle futures, bringing their net-long futures positions to 3,336 contracts.