DTN Early Word Livestock Comments 10/27 06:07

DTN Early Word Livestock Comments 10/27 06:07 Livestock Traders Wait for Direction Feedlots have their sights set on receiving at least $2.00 more for cattle this week. There has not been any cash business done to establish the level of strength. Hogs closed higher Wednesday, but the earlier strength of the day was held as the market needs more fundamental news to push prices higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $191.99 -$0.15* Hogs: Lower Futures: Lower Lean Equiv: $105.67 -$0.75** *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: Even though cash cattle are expected to trade higher this week, futures seem to have stalled. Trades are not leading the market higher but may react if cash would trade more than $3.00 higher. Packers are branching out, talking to feedlots that they normal do not purchase cattle from. With the supply of market-ready cattle tight, they are looking where they can for supply. This puts feedlots into a strong position as they have competition for their cattle. After a few days of strong boxed beef prices, they were mixed Wednesday with choice down $0.57 and select up $1.25. Weekly export sales could provide some direction to the trade but most of the emphasis will be on cash prices. Thursday is the final day to trade October feeder cattle.