DTN Early Word Livestock Comments 10/14 06:24

DTN Early Word Livestock Comments 10/14 06:24 Choppy Trading Activity Expected Monday Live cattle and hog futures diverged on Friday. Cash cattle did not see further gains in price levels. The change in cash hogs was not posted but did not hinder traders from remaining supportive of futures. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $226.11 +$0.22* Hogs: Steady Futures: Mixed Lean Equiv: $100.47 -$0.40** *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: Hopes for higher cash cattle trade on Friday did not materialize with prices remaining at Thursday's levels. Southern cattle traded $1.00 higher for the week with Northern dressed cattle at steady money. Futures had it already factored in, leaving live cattle futures drifting lower. Feeder cattle futures closed higher in deferred contracts, likely as a reaction to lower grain prices and expected continued lower grain prices based on the WASDE report. The WASDE report was supportive of beef prices for the rest of this year and next year. These are just estimates and will change from month to month based on the strength or weakness of prices and did not have much influence on Friday's trading activity. Boxed beef prices were mixed with choice up $1.27 and select down $2.01. The Commitments of Traders report showed funds added 10,076 long futures in live cattle, increasing their net-long position to 77,964 contracts. They added 1,646 futures positions in feeder cattle, bringing their net-long position to 6,449 contracts.