DTN Early Word Livestock Comments 10/26 06:06

DTN Early Word Livestock Comments 10/26 06:06 Consolidation of Futures May Continue Cattle futures took their turn at taking a breather Tuesday. Higher grain prices had an impact on feeder cattle while live cattle felt some impact from lower feeders but mostly found traders waiting to see what unfolds this week. Hogs spent a good portion of the day trading lower but strong cash supported futures in the end. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Lower Live Equiv: $191.17 +$1.12* Hogs: Higher Futures: Lower Lean Equiv: $106.26 -$3.60** *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. GENERAL COMMENTS: Cash is expected to trade higher this week, but it seems traders want to see the extent of the increase rather than leading the market higher. Demand remains good as boxed beef prices showed strong gains Tuesday. Choice increased $3.51 with select up $1.74. Slaughter pace continues to remain brisk as packers need to fill demand. Feedlots will try to capitalize on the cash strength of the past few weeks and will hold out for higher prices. Feeder cattle suffered triple-digit losses in large part due to higher grain prices. Front-month October gained $0.92 as it remains close to the index as Thursday is the final trading day for the contract.