DTN Early Word Livestock Comments 10/22 06:18

DTN Early Word Livestock Comments 10/22 06:18 Cattle Futures May Drift Sideways Tuesday Traders were unsure of continued strength in the cattle market and held back aggressive buying Monday. Boxed beef prices continue to exhibit strength. The February and April lean hog contracts closed at new contract highs as traders anticipated higher prices. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $233.51 +$1.52* Hogs: Higher Futures: Higher Lean Equiv: $104.13 +$1.65** *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 could not generate trader interest to buy the market Monday. Even though boxed beef prices have been increasing, there is concern whether strong demand will continue due to the higher prices. Boxed beef on Monday was higher with choice up $2.21 and select up $2.01. Boxed beef has been on a roll over the past few weeks with prices increasing almost daily. Feedlots will hold for no less than steady money and may not sell cattle any sooner than Friday hoping for the continued strength of boxed beef. The Cattle on Feed report will be released Friday and it is too early to see traders positioning themselves ahead of the report. Some recent auctions have shown some weakness in feeder cattle prices, but overall prices remain supported and are expected to remain that way through the end of the year.