DTN Early Word Livestock Comments 11/22 06:12

DTN Early Word Livestock Comments 11/22 06:12 Follow-Through Strength Expected Both live and feeder cattle futures gapped higher on the open and did not retrace, leaving the gap intact. Cattle were higher, but the gains a little disappointing after the bullish Cattle on Feed report. Hogs were moderately higher, likely on spillover and the fact that cash was higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $190.36 +$0.39* Hogs: Higher Futures: Mixed Lean Equiv: $99.84 -$1.45** *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: The cattle market gapped open as expected, but futures did not move as high as most expected. This is understandable as futures moved up last week, having already some of it factored in. Nevertheless, the gains pushed April and later live cattle contracts to new highs with nearby December and February positioned to challenge the highs. Cash cattle did not trade, but boxed beef was supportive. Choice cuts were up $0.51 with select up $0.79. Cash business may surface Tuesday due to the holiday-shortened week with expectations of stronger cash. Feeder cattle found support not only from the Cattle on Feed report but also from the pressure on corn futures Monday. Feeder cattle prices at auctions remain mixed. The Commitment of Traders report showed funds reducing their long positions by 10,475 contracts to a net-long position of 49,704.