DTN Early Word Opening Livestock 10/25 06:09

DTN Early Word Opening Livestock 10/25 06:09 Traders Looking Ahead to October Cattle on Feed Report The direction of the market Friday morning is expected to be limited with cattle trades focusing on further adjustments after the early week gains, while looking ahead to the afternoon release of the Cattle on Feed Report. By Rick Kment DTN Livestock Analyst Cattle: Higher Futures: Mixed Live Equiv: $144.35 +0.93* Hogs: Lower Futures: Mixed Lean Equiv: $ 79.30 -0.51** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Additional cash cattle trade is expected to continue Friday, and some business may be delayed until after the 2 p.m. release of the Cattle on Feed report. Light-to-moderate gains for the week in all areas appears to be helping to solidify market support. Despite the increased offerings of cattle through the week by feedlot managers, the midweek rally in futures trade and consistent support in beef values is pointing to underlying cash market support. There was limited trade in the South Thursday afternoon at $115 per cwt live basis, $2 per cwt higher than last week, and $175 per cwt higher dressed basis in the North. This is $0.50 per cwt higher than last week. Asking prices on cattle left are expected to be near $111 and higher live in the South and $178 dressed in the North. Traders are looking for direction from the afternoon Cattle on Feed report, but if final numbers come in near expectations, limited overall market shifts will be likely, and could keep prices within the current market range. But this still will allow for some pre-report adjustments through the Friday session. Friday slaughter runs are expected at 117,000 head.