DTN Early Word Livestock Comments 10/03 06:17

DTN Early Word Livestock Comments 10/03 06:17 Cash Cattle Are Expected Higher This Week Livestock futures found good support Wednesday with cattle and hogs posting triple-digit gains. The strength of hogs was limited to nearby months, trailing off into losses for the second half of next year. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $219.48 -$0.47* Hogs: Higher Futures: Higher Lean Equiv: $101.03 -$1.29** *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: Cattle futures received strong buying interest Wednesday, possibly on the idea that the port strike might be bullish for the market as beef imported will be impacted. Exports will also be impacted, but the focus may have been on imports. Consumers may also increase their meat buying and stock up on supply as the COVID disruptions are still fresh on their minds. There were no cattle traded Wednesday, but the higher futures may indicate higher cash prices this week. Cattle futures were sharply higher despite the renewed weakness of boxed beef. Choice cuts declined by $0.36 while select cuts declined by $1.37. The packers do not want to pay more for cattle but feedlots expect higher prices and are willing to hold for them even if it means they may be holding cattle over to next week. Feeder cattle futures posted stronger gains than live cattle, breaking above the recent chart resistance and triggering further buying interest. There is a strong demand for feeder cattle in the country with auction prices stronger this week.