DTN Early Word Livestock Comments 10/24 06:24

DTN Early Word Livestock Comments 10/24 06:24 Traders Assess Further Price Potential Thursday Live cattle moved above technical resistance and new highs Wednesday, but could not hold onto those gains and closed in negative territory. Feeder cattle were not as strong technically. Hog futures closed mixed with spreading supporting the nearby months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.79 -$0.96* Hogs: Lower Futures: Mixed Lean Equiv: $104.11 +$0.95** *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 looked like they would hold above resistance for a while, but buying dried up as higher futures did not generate further buying interest Wednesday. With the Cattle on Feed report on Friday, traders did not seem interested in holding onto newly established long positions if they did not generate greater potential. Cash cattle did not trade, leaving the market in limbo. It is doubtful cattle will trade Thursday as feedlots hope for greater strength in boxed beef and higher futures before deciding whether to sell at even money or hold for higher prices. Boxed beef prices were mixed Wednesday with choice down $2.55 and select up $0.97. The average estimate for cattle on feed as of Oct. 1 is 99.7% of a year ago. Placements in September are estimated at 95.6%. Marketings are estimated at 102.2%.