DTN Early Word Livestock Comments 10/08 06:14

DTN Early Word Livestock Comments 10/08 06:14 Strong Demand Supports Livestock Most futures contracts were higher in the livestock complex Monday with feeder cattle showing the greatest gains. Boxed beef prices surged. Cash hogs were higher along with cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $223.63 +$2.02* Hogs: Higher Futures: Higher Lean Equiv: $102.05 +$1.74** *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 spent some time in negative territory but were able to close Monday positive for the day. Traders may be hesitant over the upside price potential for cash. The fact that packers did not purchase many head for deferred delivery provides confidence that higher prices may be obtained. Boxed beef prices surged with choice up $3.35 and select up $1.72. There have been back-to-back days of good boxed beef prices which has added to the support for higher cash prices. Futures contracts for next year continue to make higher highs and are nearly at a level of technical resistance. The current pasture and rangeland conditions are not very good, which may continue to curtail heifer retention and the growth of cattle numbers.