DTN Early Word Livestock Comments 10/09 06:14

DTN Early Word Livestock Comments 10/09 06:14 Cattle Futures May Have Higher Cash Factored In Livestock futures extended gains Tuesday with cattle and hogs setting new highs for the move. Traders continue to support the markets as fundamentals are positive and the trend is up. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $223.92 +$0.29* Hogs: Higher Futures: Higher Lean Equiv: $100.81 -$1.24** *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: Boxed beef prices were mixed Tuesday with choice up $1.09 and select down $0.18. That was not enough to set a negative tone in the market as the recent strength indicates strong demand for beef. The packers may not slow the slaughter pace further as they need to supply beef to the market. Feedlots will hold out for higher prices this week as they know the packers did not purchase many for deferred delivery. Higher futures prices also provide confidence to feedlots that higher cash can be achieved. Cash trade is likely to be pushed to the end of the week Lower feed prices allow the feedlots to hold for higher prices and hold for the following week if necessary. Cattle numbers remain tight and will remain that way for some time.