DTN Early Word Livestock Comments 11/18 06:12

DTN Early Word Livestock Comments 11/18 06:12 Mixed Trading Ahead of Report Cattle rebounded Thursday with feeder cattle higher due to lower corn prices most of the day. Live cattle were the recipients of some spillover buying as well as cash cattle trading higher in the South. Hogs chopped around most of the day with spread trading putting pressure on the December contract. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $190.86 +$0.05* Hogs: Lower Futures: Lower Lean Equiv: $100.55 -$1.00** *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 began Thursday lower but found spillover support from feeder cattle trading higher as a reaction to lower corn futures. As the day progressed, cash cattle in the South began to trade higher with packers paying $1.00 to $2.00 more than last week. This was a little surprise to the market as the anticipation was for steady cash due the light trading that took place Wednesday. Boxed beef did not provide much support with choice up $0.01 and select up $0.39. Weekly export sales were good but not exceptional at 13,400 metric tons (mt). Traders will be cautious and will likely focus on squaring up current market positions ahead of the Cattle on Feed report to be released after the close Friday afternoon. The average estimate for cattle on feed is 98.3%. Placements are estimated at 96.3% and marketings at 100.8%. This would be positive for the market. Feeder cattle futures may follow a similar direction as live cattle with added pressure from stronger corn prices overnight.