DTN Early Word Livestock Comments 11/02 06:48

DTN Early Word Livestock Comments 11/02 06:48 Early More Trade Mixed Monday was a brutal day for feeder cattle with futures under pressure during the last hour of trading, but then plummeting during the final 15 minutes. Live cattle closed lower but thankfully not following suit. Hogs held their own but again, did not find underlying cash support. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $214.38 +1.14* Hogs: Lower Futures: Mixed Lean Equiv: $ 99.41 -4.08** *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: It is unusual for the big news of the day to be the extreme selling pressure that erupted in feeder cattle during the final 15 minutes of trading. Sell stops were hit, resulting in Katie-bar-the-door selling. There is a strong possibility that futures will rebound Tuesday as the fall was technically driven rather than fundamental. Live cattle closed lower but held well considering the pressure from feeders. Live cattle fundamentals seem positive due to higher cash last week and the prospect of higher cash this week. Showlists are smaller and boxed beef closed higher. Choice cuts increased $1.86 with selects cuts up $1.02. Cash trade is expected to commence earlier again this week, but likely not Tuesday. The Commitment of Traders report showed funds were net sellers of 1,816 futures contract last week bringing their net-long positions to 42,911 contracts.