DTN Early Word Livestock Comments 10/29 06:11

DTN Early Word Livestock Comments 10/29 06:11 Traders Show Increased Optimism The livestock complex closed higher Monday with live cattle showing the least gains. Live cattle could not push through resistance while feeder cattle are slowly trending higher. Hog futures posted new contract highs across the board. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $232.99 +$0.01* Hogs: Higher Futures: Higher Lean Equiv: $107.84 +$3.01** *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 began lower Monday, as expected, due to the Cattle on Feed report but eventually found greater buying interest as traders focused back on the current fundamentals. Higher cash last week and the potential for no less than steady cash this week provide continued support. However, support has not been sufficient to push futures above technical resistance. Boxed beef was mixed Monday with choice up $1.26 and select down $2.90. This may cause traders to pause on their outlook for continued higher prices. Both domestic and international demand may begin to waver at the higher prices. The packers were able to purchase cattle ahead last week, but they are keeping up with demand and with forward purchases nearly the same as the previous week. this is not considered negative to the market. Thursday is the last trading day for October live cattle futures.