DTN Early Word Livestock Comments 10/20 06:01

DTN Early Word Livestock Comments 10/20 06:01 Futures Gains May Slow Livestock futures were higher again yesterday as both fundamental and technical elements of the market are positive. Some light cattle trade developed in Iowa/Minnesota at $3.00 higher with more activity surfacing today. Hog futures were supported by cash and optimism. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $186.77 +$1.49* Hogs: Higher Futures: Higher Lean Equiv: $109.21 -$1.37** *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: Feedlots have dug in their heels and seem not concerned about selling cattle this week unless packers meet their offers. Some light trading took place yesterday $3.00 higher but that was not enough to set the price for the week. However, many times early light trade indicates the level for the rest of the week. Feedlots want more and they feel they can get it. Weekly export sales may set the tone for the day. The past few weekly sales have not been very impressive, but they have not had a lasting effect on the market. Domestic demand remains strong. Traders may begin to turn their attention to the Cattle on Feed report to be released on Friday. The average trade estimate for cattle on feed is 99.1 percent. Placements are estimated at 96.2 percent with marketings at 103.9 percent. Caution will be exercised ahead of the report as the pattern has been for the trade being quite a bit more optimistic on placements than USDA.