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DTN Early Word Opening Livestock       10/18 08:01
   Cash Cattle Trade Remains Elusive

   It will be another late week of trade in cash cattle markets as both sides
remain locked in their respective positions as they head into the end of the
week. Concerns of further futures pressure is holding early Friday.

By Rick Kment
DTN Livestock Analyst

Cattle: Steady to Higher   Futures: Mixed   Live Equiv: $139.81 +0.19*
Hogs:   Higher             Futures: Mixed   Lean Equiv: $ 81.05 -1.44**

*   based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Another Friday has arrived and packers and feeders find the need to get down
to business once again. So far this week, packer bids have been sluggish to say
the least with limited interest shown over the last few days. The bids that
have been seen have been pretty well established well below asking prices. Bids
in the North developed at $175 per cwt. This is a good $3 to $5 per cwt below
asking prices of $178 to $180 per cwt dressed basis in the South and likely to
spark some additional uncertainty about the potential to bring strong
end-of-the-week cash market support back to the table before both sides call it
good for the week. Asking prices in the South remain at $111 to $112 per cwt,
but as bids start developing through the day, they will likely be firmly below
these levels. Futures trade is expected mixed with limited expectations of
renewed support this late in the week. Feeder cattle futures have led the
market correction lower Thursday as air had started to become thin above $145
per cwt. Although the case for continued firm longer-term market support
remains, the cattle complex has been ripe for a market correction over the last
couple of weeks. It is uncertain at this point if Thursday's action will be
enough to satisfy sellers in order to spark renewed interest through either
live cattle or feeder cattle trade at the end of the week. Friday slaughter
runs are expected at 112,000 head.
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