DTN Early Word Livestock Comments 11/21 06:08

DTN Early Word Livestock Comments 11/21 06:08 Cattle Futures Expected to Gap Higher Cattle were moderately higher at the close Friday ahead of the Cattle on Feed report. Traders remained positive moving into the report even after three days of strong gains. Hogs moved in the opposite direction, feeling the pressure of lower cash and the holiday-shortened week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $189.97 -$0.89* Hogs: Lower Futures: Lower Lean Equiv: $101.29 -$0.74** *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: Traders did not seem overly concerned over the Cattle on Feed report Friday as futures closed higher across the board. The previous Cattle on Feed report was bullish, and the expectations were for a friendly report this time and that is what they got. The report was bullish for on-feed numbers and placements while being neutral for marketings. The on-feed number was bullish, being below the trade estimates. The big number in this report was the placements. This placement number is the lowest for October since the series began in 1996. Some of the states to make note of is Iowa at 90% of a year ago, Kansas at 97%, Nebraska at 94%, and Texas at 86% versus a year ago. The Texas placement number is bullish for the cash markets as we move forward. Cattle are expected to gap higher on the open with the potential for the market to reach and exceed contract highs. Boxed beef was mixed Friday with choice down $2.23 and select up $1.09. Packers may be more active earlier due to the holiday-shortened week.