DTN Early Word Livestock Comments 11/03 06:13

DTN Early Word Livestock Comments 11/03 06:13 Futures Adjust to Cash Cattle and hog futures moved in the opposite direction with a vengeance. The large drop in feeder cattle should have never taken place based on the movement Tuesday. Early cash cattle activity increased buying interest. Hogs continue to show weakness in cash, leaving traders guessing as to a bottom. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $214.65 +0.27* Hogs: Lower Futures: Mixed Lean Equiv: $101.18 +1.77** *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: The huge decline in feeder cattle should never have taken place on Monday with Tuesday's recovering what was lost and then some. There was no fundamental reason for the sell-off, but it left some unhappy traders in its wake. However, the livestock complex is probably back to where it should be given current fundamentals. Cash traded Tuesday with packers opening their wallets early. Texas and Nebraska traded some cattle $3 higher than last week. This sets the stage for the week as feedlots will hold out for nothing less, knowing packers need cattle. Boxed beef prices were mixed with choice down $0.20 while select increased $1.74. There is good demand for feeder cattle, which gives all the more reason the debacle in feeder cattle futures was an aberration.