DTN Early Word Livestock Comments 10/28 06:28

DTN Early Word Livestock Comments 10/28 06:28 Cattle Expected To Open Lower Monday Cattle traders were cautious Friday ahead of the Cattle on Feed report, and rightly so, as the numbers came in higher than the analyst's estimates. The report may put initial pressure on the market Monday. Hog futures were able to close higher with most of the buying interest in the December contract. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $232.98 +$0.70* Hogs: Higher Futures: Mixed Lean Equiv: $104.83 +$0.79** *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: Traders were uncertain of the numbers the Cattle on Feed report would show, resulting in mixed trade to end Friday. The report came in slightly bearish with on-feed numbers as of Oct. 1 at 100% compared to the estimate of 99.7%. Placements in September were at 98% of last year compared to the estimate of 95.6%. Marketings were 102% compared to the estimate of 102.2%. The higher placement number was not unexpected as the dry conditions were thought to have moved more cattle to feedlots. Nevertheless, the trade usually reacts to which side of the estimates the actual numbers fall. The report may result in pressure on the market at the open Monday but traders will then focus back on the fundamentals, tighter cattle supply, and strong beef demand. Boxed beef prices Friday closed higher with choice up $1.07 and select up $0.74. The Commitments of Traders report showed managed money traders adding 4,524 long futures positions in live cattle, bringing their net-long position to 92,825 contracts. They added 618 long positions to feeder cattle, bringing the next long position to 8,275 contracts.