DTN Early Word Opening Livestock 10/17 06:26

DTN Early Word Opening Livestock 10/17 06:26 Livestock Traders Searching for Cash Trade Direction Limited interest thus far in cash cattle trade has kept markets sluggish and looking for potential end-of-the-week movement. The underlying support in live cattle futures continues to spark firm expectations in cash values. By Rick Kment DTN Livestock Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv $139.62 +0.14* Hogs: Higher Futures: Mixed Lean Equiv $ 82.49 -0.34** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle activity remains on the back burner through the early part of the week with asking prices becoming more available at $111 to $112 per cwt live basis in the South and holding at $180 in the North. The overall lack of packer bids so far this week is not unusual, but prices should be more available through the day Thursday. Although it is uncertain just how aggressive packers will be until the end of the week, it appears that market firmness should develop given the underlying bullish tone in futures trade so far this week as well as steady gains in beef values. Futures trade is expected mixed in a narrow-to-moderate trading range as the focus will once again return to December contracts as they slowly but steadily continue the bullish shift higher during the week. Even though prices are still have ground to cover before reaching resistance levels set at July highs of $114.35 per cwt, this target is well in sight, and attainable through the end of the week given the steady but measured market support over the last month. October futures remain lightly traded with limited interest, but the strong shift higher Wednesday, quickly narrowed the price spread between October and December contracts, helping to add even more firmness through the cattle complex. Feeder cattle futures are expected to show limited activity early Thursday morning, but outside markets will likely become a major factor late in the week with an increased focus on grain trade and production costs. Thursday slaughter runs are expected at 117,000 head.