DTN Early Word Livestock Comments 10/27 06:11
Further Follow-through Expected
The cattle complex finally reacted to the bullish implications of the Cattle
on Feed report. Triple-digit gains were seen across the board. Hogs moved in
the opposite direction with triple-digit losses as fundamental support remains
DTN Contributing Analyst
Cattle: Higher Futures: Mixed Live Equiv: $212.59 +0.61*
Hogs: Lower Futures: Mixed Lean Equiv: $101.29 -0.26**
*Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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
Cattle futures finally reacted to the bullish implications of the Cattle on
Feed report. This may have been fueled by some light cash trade developing in
Texas at steady to $1 higher from last week. Traders seem to be hoping for more
as front-month October live cattle futures closed $1.80 higher at $126.85. The
October contract goes off the board on Friday. Generally, early cash trade
seems to set much of the tone for the week. This may provide feedlots with
confidence to hold for higher cash. Boxed beef was mixed, indicating the
possibility of support being established. Choice cuts increased $1.72 with
select cuts down $0.65.
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