DTN Early Word Livestock Comments 11/07 06:26

DTN Early Word Livestock Comments 11/07 06:26 Mixed Trading Anticipated Monday Even with steady to higher cash, live cattle futures closed lower for the week. The concern seems to be increasing over ongoing demand. Hogs followed a similar pattern with futures closing lower for the week, but that was understandable due to the lack of cash and cutout strength. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $194.14 -$1.01* Hogs: Steady Futures: Mixed Lean Equiv: $104.63 +$0.34** *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 traded in a narrow range Friday, unable to push higher despite steady to higher cash for the week. There is much hope of continued higher cash by feedlots, but there is concern the market may be running out of steam. Yes, market-ready cattle numbers are tight; but a lack of demand down the road will mean less cattle will need to be slaughtered. I am not saying this will be the case but continued increasing food prices and other prices for goods and services will affect what consumers will spend their money on and will have them change their eating habits. So far, slaughter has been strong, running ahead of last year. Feedlots will ask for higher prices this week, hoping packers will need to step up to purchase the amount of cattle needed to meet strong demand. Boxed beef was negative Friday with choice down $1.43 and select down $1.16. The Commitment of Traders report showed funds and net buyers of 452 futures contracts, bringing their net total long positions to 89,128 contracts.