DTN Early Word Livestock Comments 11/16 06:36

DTN Early Word Livestock Comments 11/16 06:36 Traders Remain Cautious Live cattle followed the pattern of last week with minimal price movement and futures closing without any fanfare. Traders are waiting for cash to trade. Hogs were generally higher with the exception of the December contract. There is some optimism despite underlying weakness. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $213.20 -1.02* Hogs: Steady Futures: Mixed Lean Equiv: $100.81 -0.78** *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: Live cattle futures moved similarly as they had for much of last week. Futures closed mixed despite the idea that cash might trade higher this week. There were no bids or offers placed, but showlists were distributed and did not show an abundance of cattle for sale. But until cash trade takes place, traders seem comfortable with holding positions and not anticipating price direction. They are taking a wait-n-see attitude. Inflation is driving up beef prices at the retail level, which may slow demand. Packers are assessing how much impact this will have in the near term. Lower boxed beef prices may indicate the impact is taking place with choice down $1.10 and select down $2.25. The Commitment of Traders report showed funds increasing their longs by 7,309 contracts to a net-long of 49,203 contracts.