DTN Early Word Livestock Comments 11/08 06:08

DTN Early Word Livestock Comments 11/08 06:08 Feedlots Expect Higher Cash Both cattle and hogs were able to close last week higher. Cattle were supported by higher cash while hogs defied underlying cash, opting for the idea that enough is enough; packers may find hog numbers begin to tighten. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $215.889 -$0.43* Hogs: Higher Futures: Higher Lean Equiv: $103.31 -$1.35** *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: Early cash trade last week set the tone for higher cash, but it did not set it for the week. Cash was again higher Friday, resulting in cash in the South finishing the week $4 to $5 higher with trade in the North $4 higher. This will give feedlots confidence to ask for more this week. Packers may find showlists lighter again this week as cattle supply seems to be tightening. Packers did not like to step up to the offers, but they needed cattle. They held off many weeks without paying up, which may have resulted in them cleaning up much of their forward contracted supplies, which has now reduced their bargaining power. Boxed beef was lower Friday with choice down $0.68 and select down $0.70.