DTN Early Word Livestock Comments 11/04 11:44

DTN Early Word Livestock Comments 11/04 11:44 Further Strength Anticipated The cattle complex extended gains with live cattle futures anticipating further gains in cash. A limited amount of cattle traded Wednesday, pushing business to the second half of the week. Hogs rebounded nicely due to the strength of cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $215.53 +0.88* Hogs: Steady Futures: Higher Lean Equiv: $107.41 +6.23** *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: Cattle futures pushed higher on the idea that cash may increase further than the gain already seen on limited trading activity. Packers were bidding higher than last week at $1.28 in the South and $2.03 in the North, which were steady prices from Tuesday and already higher than last week. However, feedlots are holding for higher prices, and they feel they can get them. Packers need cattle to maintain the slaughter pace to fill demand, and more may be required of them in order to obtain those cattle. The price premium December held over cash has been quickly eliminated over the past week. Boxed beef price increased Wednesday with choice up $1.11 with select up $1.59. Weekly export sales may trim some of the exuberance if the numbers are not very good.