DTN Early Word Livestock Comments 10/15 06:45

DTN Early Word Livestock Comments      10/15 06:45
   Export Sales May Set Direction

   The cattle complex uncovered some buying interest Thursday from stronger
boxed beef prices as well as strong financial markets. Hogs were not the
recipients of any spillover strength closing lower. December hogs are now the
lead month.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady   Futures: Mixed    Live Equiv:   $209.96 +0.57*

   Hogs:  Steady   Futures: Higher   Lean Equiv:  $113.14 +1.21**

   *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 bounced Thursday, generally regaining the losses of the previous
two days. Cash cattle trade was rather quiet with feedlots holding out for
higher cash even though cattle were sold at steady cash on Wednesday. The
resolve of both packers and feedlots will be tested Friday with further
activity expected to develop as business will need to be accomplished. A strong
stock market caused traders to think maybe the economy will remain strong,
improving disposable income, which may result in better beef demand. Boxed beef
showed strength in both categories with choice cuts up $0.30 and select cuts up
$1.98. This could indicate beef prices may have found a bottom. Weekly export
sales may set some price direction.

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