DTN Early Word Livestock Comments 11/25 06:16

DTN Early Word Livestock Comments 11/25 06:16 Light Trading Activity Could Provide Volatility Even though cash cattle traded higher than expected Wednesday, futures did not reflect it. Higher corn price put pressure on feeder cattle with thinner trade volume leaving traders unable to ignore spillover pressure. Hogs were under pressure as both cash and cutouts were struggling. Markets will close an hour earlier Friday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $188.78 -$2.18* Hogs: Steady Futures: Mixed Lean Equiv: $97.21 -$1.94** *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: Cash cattle began trading Wednesday with prices developing with greater gains than expected. Packers stepped up to purchase ahead of Thanksgiving, paying $3.00 to $4.00 higher. What may stymie the strength of futures looking forward is the significant decline of boxed beef, showing choice down $4.07 and select down $0.85. This may just be temporary as retail outlets had sufficient beef on hand through the holiday. Or it could be the beginning of a slowing demand trend. Lighter trading volume with higher cash was unable to move futures higher, which was a bit of a surprise. Lighter trading activity is expected again Friday, which may not provide a good indication of direction. Grain markets were closed overnight, providing no indication of strength or weakness Friday.