DTN Early Word Livestock Comments 10/25 06:17

DTN Early Word Livestock Comments 10/25 06:17 Futures Should Remain Supported Cattle continued higher with support from the Cattle on Feed report, expectations for higher cash, and lower corn prices. Hog futures took a breather with spread trading between December and later months taking place. The market is waiting for further cash direction. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $190.05 +$2.35* Hogs: Higher Futures: Higher Lean Equiv: $109.86 +0$0.00** *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: Live cattle showed no sign of slowing down as contracts posted triple-digit gains with October through February making new contract highs. October has made higher highs 14 consecutive trading days with six of those days being consecutive new contract highs. Strong cash last week and the bullish aspect of the Cattle on Feed report continued to provide support. With showlists down 21,500 head this week in Kansas, Nebraska and Texas, the stage is set for higher cash if packers maintain the current slaughter pace. Total beef in cold storage compared to last year is a little cause for concern as inventory totaled 522.9 million pounds and was 19% above a year ago. However, that may have a longer-term impact and will not be a focus at the present time. The Commitment of Traders report showed funds as net buyers of 2,237 futures bringing their net longs to 37,299.