DTN Early Word Livestock Comments 11/24 06:32

DTN Early Word Livestock Comments 11/24 06:32 Further Strength Expected The cattle complex moved higher with feeders leading the charge. Cash traded higher, providing confidence to traders to move futures higher to keep in line with cash as well as keeping premium in later months. Hogs could not find any solid direction with cash higher and cutouts lower. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $208.25 -0.52* Hogs: Steady Futures: Mixed Lean Equiv: $ 91.78 -1.33** *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 uptrend in cattle futures has picked up steam as traders see more strength to come. Feedlots continue to command higher prices for their cattle and are getting it. Being a holiday week, cash traded Tuesday at $2.00 higher than last week at $136 with some dressed sales at $4.00 higher at $214. More business is expected to be done Wednesday with some hopes that cash could even trade higher yet. Some weeks ago, packers held out for numerous weeks without paying higher prices, resulting in limited forward contracted cattle. Now, they find themselves in a position of having to purchase at ever higher prices as they have little bargaining power. Demand remains strong but cutouts declined Tuesday with choice down $0.61 and select down $1.06.