DTN Early Word Livestock Comments 10/11 05:44

DTN Early Word Livestock Comments 10/11 05:44 Traders Balance Fundamentals and Technicals The cattle complex coasted into the weekend after a strong week. Cash traded in line with what took place earlier in the week as well as weakness in boxed beef, which provided traders with little to get excited about. Hogs struggled with both lower cash and sharply lower cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $211.86 -1.25* Hogs: Steady Futures: Lower Lean Equiv: $114.07 -5.35** *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: It was a good week for cattle with live cattle futures, gaining around $5.00 and feeder cattle up around $7.00 to $8.00. This has corrected an oversold market. Underlying fundamentals may not fully support this move, but nevertheless, it was long overdue. Futures have moved more to where they probably should be. The long liquidation phase by the funds seems to have run its course. Now it will be up to underlying cash to dictate whether current prices will hold. The market has overall bearish fundamentals as far as supply is concerned, but that does not indicate that prices will fall back. It more likely indicates limited upside potential. Cash trade last week at steady to $1 higher provides some optimism for steady to higher prices again this week. The anchor might be the uncertainty of boxed beef prices after both choice and select cuts fell on Friday.