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DTN Early Word Livestock Comments      10/19 06:43
   Traders Search for Further Direction

   Cattle and hogs diverged Monday with most of the pressure put on feeder
cattle. Live cattle showed little to trade on other than some spillover
pressure. Hogs continued to defy the weakness of cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady   Futures: Lower   Live Equiv:   $209.66 -0.24*

   Hogs:  Steady   Futures: Mixed   Lean Equiv:  $107.79 -0.54**

   *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


   Traders were searching for something to get excited about in live cattle,
but the only thing they found was pressure from the weakness of feeder cattle.
Feeder cattle broke out of the sideways trading range that had developed over
more than a week to the downside with a vengeance. The pressure was both
technical and fundamental as higher placements are expected. Cash cattle trade
was quiet Thursday as expected and is likely to remain that way again Tuesday.
Boxed beef showed minor losses with choice down $0.15 and select down $0.81.
The Commitment of Traders report showed funds as net buyers of 10,312 contracts
increasing their net-long positions to 35,469 contracts.
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