DTN Early Word Livestock Comments 10/18 06:25

DTN Early Word Livestock Comments 10/18 06:25 Feedlots Rewarded With Steady to Higher Cash Prices Livestock futures did not accomplish much Thursday with mixed closes in cattle and hogs. Traders were unsure of continued strength in either complex, leaving futures drifting. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $231.16 +$0.31* Hogs: Higher Futures: Higher Lean Equiv: $102.41 +$1.56** *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: The consensus was that cash cattle would trade no less than steady money this week which is what occurred. There could be some changes Friday, but early cash trade usually sets the stage for the rest of the week. Southern cattle traded $1.00 higher and Northern dressed cattle traded steady with last week. The October live cattle contract should trade higher to align with the cash market. Later contracts may hold their discount for the time being. This should be considered a victory and cattle futures should be supported. Boxed beef closed higher again with choice up $0.13 and select up $1.15. Feeder cattle prices in the country remain strong on good demand. Buyers anticipate live cattle prices will remain strong for a few years as the beef herd is not showing signs of rebuilding.