DTN Early Word Livestock Comments 09/23 06:20

DTN Early Word Livestock Comments 09/23 06:20 Livestock Futures May See Further Support Monday Live cattle traders found what they were looking for Friday -- higher cash prices. This pushed October above resistance and extended the gains in all contracts. The Cattle on Feed report was neutral. Hog futures drifted throughout Friday with limited fundamental support to excite traders. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $220.64 +$0.38* Hogs: Lower Futures: Lower Lean Equiv: $100.20 -$0.70** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Live cattle futures increased during the day Friday due to the positive news of higher cash cattle trade. Northern dressed cattle traded $2.00 higher and Southern live cattle traded $2.00 to $3.00 higher. Feedlots were rewarded for holding out. This news generated buying interest from traders as futures adjusted closer to cash. Higher cash became the focus of traders rather than the caution over the Cattle on Feed report. The report was neutral with on-feed numbers at 101% compared to the estimate of 100.7%. Placements were 99% compared to the average estimate of 98.5%. Marketings were 96% compared to the average estimate of 96.6%. Boxed beef prices were higher with choice up $0.63 and select up $0.33. Feeder cattle did not share the same sentiment as live cattle with futures closing mixed Friday. The Commitments of Traders report showed fund traders reducing their long position by 545 contracts to a net long of 43,777 live cattle futures contracts. The fund traders purchased 1,738 futures contracts in feeder cattle, reducing their net-short position to 870 contracts.