DTN Early Word Livestock Comments 11/01 06:27

DTN Early Word Livestock Comments 11/01 06:27 Cautious Trade to begin the Week Cattle and hog futures diverged on Friday with hogs gaining about as much as was lost in the cattle contracts. The strength of cash cattle last week pushed futures higher during the week, but gains were erased the second half of the week. Hogs showed nearly the exact opposite movement. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $213.24 +0.56* Hogs: Steady Futures: Mixed Lean Equiv: $103.49 +2.52** *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: December cattle futures are now front-month and with the activity last week, the premium it carries over cash is not quite as great as it had been for quite some time. Traders are more excited over the prospect of stronger cash through the end of the year, but one would not have thought that due to the activity on Friday. Dressed cattle in the North increased $4 last week while live cattle in the South gained $2. The anticipation is that packers will need to be aggressive again this week as they need cattle to satisfy brisk chain speed. Of course, nothing is likely to be done Monday with maybe only some showlists distributed. Cash is expected to trade earlier this week rather than later. Boxed beef is confirming a bottom is in place with choice up $0.83 and select up $0.73 on Friday.