DTN Early Word Livestock Comments 11/03 06:11

DTN Early Word Livestock Comments 11/03 06:11 Direction May Hinge on Weekly Exports Live cattle just could not find solid support Wednesday, again closing lower in contracts through June. The strong gains in feeder cattle did not provide spillover support. Hogs were under pressure as cash and cutouts have not performed very well so far this week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $194.37 +$0.11* Hogs: Higher Futures: Lower Lean Equiv: $104.16 -$0.98** *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: There were a few trades in cattle Wednesday, but the volume was insufficient to provide traders with any solid numbers to trade. There were some trades which took place a bit lower than last week in Texas, which were likely lower-quality cattle. A few others were traded $1.00 to $2.00 higher in the North. Cash activity will take place Thursday as packers are running out of time for the week. Boxed beef prices were stronger with choice up $0.84 and select up $0.43. The increase of interest rates Wednesday and the rhetoric surrounding the announcement alluded to the strong potential for more increases to come. This may impact demand more than initially thought after the holiday period. Weekly export sales may have an impact on the strength of the market Thursday. Overnight grain trade shows lower corn, which should provide continued support to feeder cattle.