DTN Early Word Livestock Comments 11/09 06:46

DTN Early Word Livestock Comments 11/09 06:46 Hogs Continue to Struggle Cattle futures were able to hold gains Monday as traders anticipated higher cash again this week. The question is just how much more packers will be willing to pay. Hogs struggled much of the day with the December contract filling the chart gap that had been left since last week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $215.90 +0.01* Hogs: Steady Futures: Lower Lean Equiv: $101.82 -1.49** *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: Traders have carried a sense of optimism for cash potential this week, and that optimism kept futures steady to higher into the close on Tuesday. Traders were uncertain as to how much supply packers have contracted ahead but are sure feedlots were going to hold out for higher prices similar to last week. Their optimism paid off as packers do not have many cattle booked ahead. This will increase the resolve of feedlots to hold out as was already seen with offers at $132 to $134 in the South. Feedlots were not shy about what they had in mind this week, leaving packers pondering what they need to do. Boxed beef prices were mixed with choice down $0.89 and select up $1.08. The Commitment of Traders report showed funds as net sellers of 4,730 contracts moving their net longs to 38,181 contracts.