DTN Early Word Livestock Comments 10/11 06:36

DTN Early Word Livestock Comments 10/11 06:36 Traders Will Focus on Cash Trade Friday Cattle turned higher Thursday after initial pressure, eliminating the losses of Wednesday. Steady to higher cash cattle trade developed, giving traders confidence to buy into the market. Hogs had support from traders who felt confident demand would remain strong and prices higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $225.89 +$1.32* Hogs: Higher Futures: Mixed Lean Equiv: $100.87 -$0.33** *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: Cattle futures turned higher after early losses. Cash cattle traded $1.00 higher in the South and steady in the North. The anticipation became a reality, leaving traders confident to buy into the market. Cash trade was not expected until Friday but business being done on Thursday provided support. This likely set the stage for further cash trade Friday. Boxed beef prices continue to provide support with choice up $1.77 and select up $2.10. It has been a good week for boxed beef which should continue to support the market. Packers have reduced slaughter, which naturally would increase boxed beef prices. They need to improve margins and that is the way to do it. Reducing slaughter may also back up cattle in the country so feedlots will need to sell the cattle to move them and not remain in the positions to hold. Weekly export sales were 39% below the previous week which may be a result of higher beef prices.