DTN Early Word Opening Livestock 10/28 06:28

DTN Early Word Opening Livestock 10/28 06:28 Cattle Futures Look for Additional Support Active gains late last week in live cattle futures sparked technical buyer interest, moving prices to the highest levels late April. The underlying firmness in the complex is looking for follow-through support during late-month trade. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $144.47 +0.12* Hogs: Lower Futures: Mixed Lean Equiv: $ 81.42 +2.12** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: With the Oct. 1 Cattle on Feed report now in the rearview mirror, traders are looking more toward technical support developing late last week. Triple-digit gains in nearby contracts pushed December futures above $116 per cwt, this has not only sparked technical support as prices have broken through May highs, but it could bring more buyer support to the end of October. There may be increased underlying support in the complex, although the aggressive market rally the last two months is leaving the complex vulnerable to a market correction. Cattle on feed numbers were well within expectations, 1% lower than year-ago levels with placements at 102% year-ago levels. Limited morning price shifts are expected Monday as the overall tone of the report is expected to be viewed as neutral. Cash cattle activity is expected to remain undeveloped following firm additional gains late last week. Showlist distribution and inventory taking is likely to be the extent of market development in the cash market Monday and likely much of Tuesday. Monday slaughter runs are expected at 117,000 head.