DTN Early Word Livestock Comments 11/04 06:19

DTN Early Word Livestock Comments 11/04 06:19 Cash Cattle Trade May Not Provide Support Cattle just could not get it going Thursday as cash trade and export sales left much to be desired. Feeder cattle could not capitalize on lower corn prices. Hog futures could not hold onto gains, resulting in a mixed close despite strong export sales. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $195.15 +$0.78* Hogs: Lower Futures: Lower Lean Equiv: $104.29 +$0.13** *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: Thursday began on the wrong foot as weekly export sales were low at only 9,200 metric tons (mt, which increased concern over ongoing demand internationally. Cash cattle in the South then traded steady with last week after there were expectations of stronger cash. Northern dressed cattle traded $2.00 higher, but that was not sufficient to offset the disappointment of Southern trade. The market did not fall apart, but it may limit price strength Friday. Boxed beef prices were mixed with choice up $1.71 with select down $0.10. With increased cattle weights, one must wonder whether slaughter pace may soon diminish if evidence is seen of slowing domestic demand.