DTN Early Word Livestock Comments 10/31 06:14

DTN Early Word Livestock Comments 10/31 06:14 Livestock May Begin Week Under Pressure Live cattle were under pressure with October showing the greatest loss, even though cash traded higher during the week. Feeder cattle held on slightly weaker corn price. Hogs bounced after the large losses on Thursday due to higher cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Lower Live Equiv: $194.44 -$0.93* Hogs: Lower Futures: Mixed Lean Equiv: $109.27 +$2.88** *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 futures just could not push higher after the new contract high last Monday. Higher cash had been factored in with the market showing minor gains for the week. Feedlots will again be looking for more this week, but it may be more difficult to achieve the $2.00 to $5.00 gains of last week. Boxed beef has been performing well with prices pushing higher as demand remains surprisingly strong in the current financial market environment. Choice cuts increased $0.77 and with select up $2.58. Futures may trade mixed as pressure from higher corn may have a substantial impact on feeder cattle which will spill over to live cattle. The Commitment of Traders reports showed a huge swing with funds increasing their net-long positions by 27,526 contracts in live cattle, bringing their net-long positions to 63,552 contracts. This much of a swing in one week is not seen very often. Today is the final day to trade October live cattle.