DTN Early Word Livestock Comments 10/31 06:19

DTN Early Word Livestock Comments 10/31 06:19 Livestock Futures May Take a Breather Strength permeated the livestock complex Monday as optimism continued. There is little price resistance in the cattle complex, providing traders the confidence to buy into the market. Hogs have moved higher despite some bearishness of cash and cutouts. However, that changed Monday as packers bid higher. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $224.94 +$1.01* Hogs: Higher Futures: Mixed Lean Equiv: $ 95.12 +$1.46** *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: Tuesday is the last trading day for October live cattle with December taking over as the front-month Wednesday. The December contract moved slightly into the gap left after the Cattle on Feed report, but could not close the gap. Later contracts will need to see further strength to close their gaps. The optimism of higher cash this week and the recent strength may accomplish the task, at least in the December contract. There is no indication of cash price this week as trade did not develop and bids or offers were not posted. Boxed beef was higher with choice up $1.71 and select up $0.77. Feeder cattle have not rebounded as much as live cattle, making an interesting dynamic. Feeder cattle generally are the leaders for market direction. There is a hesitancy over how much strength there will be for cattle through the rest of the year.