DTN Early Word Livestock Comments 10/18 06:15

DTN Early Word Livestock Comments 10/18 06:15 Follow-Through Strength May Be Limited Cattle found some support from the weakness of corn and the idea of stronger cash this week. October live cattle pushed to a new contract high. Hogs found buying interest from a strong slaughter pace and the potential for higher cash this week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $183.62 +1.14* Hogs: Higher Futures: Mixed Lean Equiv: $111.41 +$1.64** *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: Cattle ran higher on the expectation of stronger cash this week. Packers would like to see margins improve but need to satisfy demand. Slaughter continues to run higher than a year ago. Boxed beef was higher Monday with choice up $0.45 and select up $1.08. October live cattle moved to a new contract high as traders anticipate further cash strength over the next two weeks before the contract expires. Traders will begin to look ahead to the Cattle on Feed report to be released on Friday, but the focus will be on cash for now. The Commitment of Traders report showed funds selling 7,874 futures contacts, bringing their net-long position to 35,062 contracts -- the lowest net long we have seen in quite some time.