DTN Early Word Livestock Comments 10/07 06:16

DTN Early Word Livestock Comments 10/07 06:16 Feedlots Will Try to Squeeze More Out of Packers This Week Cattle futures pushed higher Friday, remaining supported by the increase in cash cattle prices. This was not unexpected as feedlots held out, expecting packers to need cattle. Hogs made a new high Friday before falling back to close the day slightly lower. The packers were aggressive at the end of the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $221.61 +$2.27* Hogs: Higher Futures: Mixed Lean Equiv: $100.31 -$0.50** *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 held out last week and were rewarded with higher cash trade. Southern live cattle traded $1.00 higher and Northern dressed cattle traded $2.00 higher. October live cattle futures closed higher to adjust to the higher cash. Support also stemmed from strong gains in boxed beef as choice gained $2.78 and select gained $4.32. Live cattle futures were unable to push above the highs of Wednesday and Thursday following the higher cash and cutouts, which could increase the potential for some liquidation if boxed beef prices decline early this week. The feedlots will try to squeeze more out of the packers again this week. The Commitments of Traders report showed fund traders increasing their live cattle long futures positions by 10,878 contracts, moving to a total long position of 67,888 contacts. Fund traders were net buyers of 3,752 contracts in feeder cattle, increasing their net long futures position to 4,803 contracts.