DTN Early Word Livestock Comments 10/21 06:13

DTN Early Word Livestock Comments 10/21 06:13 No Cash Cattle Trade Expected Monday, But Pork Packers May Be Buying Hogs The livestock complex closed higher Friday in all contracts as traders remained optimistic. Continued strength in the cash cattle market resulted in triple-digit gains while hog futures were able to maintain gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.99 +$0.83* Hogs: Higher Futures: Mixed Lean Equiv: $102.48 +$0.07** *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 moved higher Friday to mirror underlying cash. Southern live cattle traded steady to $1.00 higher last week with Northern dressed trading at steady money. This renewed the optimism of traders for the time being. Boxed beef prices continued to provide support with choice up $1.39 and select up $0.68. Demand is good and the packers are trying to improve margins by slightly reducing the slaughter pace. However, higher cattle weights continue to provide sufficient beef to the market. The weekly export sales report provided little excitement as sales were 3% below the previous week. Cash cattle trade may not occur until Friday as the Cattle of Feed report will be released and traders will want another week of boxed beef prices under their belts. The Commitments of Traders report showed funds adding 10,337 live cattle futures contracts, bringing their net-long position to 88,301 contracts. They added 1,208 futures contracts in feeder cattle increasing their net-long futures position to 7,657 contracts.