DTN Early Word Livestock Comments 09/30 06:11

DTN Early Word Livestock Comments 09/30 06:11 Traders to Position For End of Month, Quarter After cattle futures adjusted higher Thursday in response to the increase in cash prices, futures could not follow through Friday, closing mixed. Hogs exhibited similar trading activity, unable to hold gains and closing mixed with traders uncertain over potential for further gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $217.57 +$0.09* Hogs: Lower Futures: Mixed Lean Equiv: $101.76 +$1.07** *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: Feedlots were able to band together and hold for higher prices last week. This sent cattle futures higher Thursday, but could not maintain follow-through strength on Friday. Traders made a valiant effort earlier in the day, but aggressive buying dried up, resulting in a mixed close. The packers may be increasing slaughter as a necessity to supply demand and needed to increase their bids to get cattle purchased. Cattle in the South traded $2.00 higher with Northern dressed cattle trading $3.00 higher. Boxed beef prices were mixed with choice up $0.32 and select down $0.29. The Commitments of Traders report showed funds purchasing 13,233 futures in live cattle, increasing their net-long positions to 57,010 contracts. They bought 1,921 futures contracts in feeder cattle, bringing their net-long position to 1,051 contracts.