DTN Early Word Livestock Comments 11/29 06:23

DTN Early Word Livestock Comments 11/29 06:23 Traders May Remain Cautious Again Livestock could not find any support Monday. The optimism for higher cash was not sufficient to trigger buying interest in cattle futures. Lower corn prices much of the day did not provide support for feeder cattle. Hogs fell apart despite stronger cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $188.73 +$0.09* Hogs: Higher Futures: Mixed Lean Equiv: $97.38 +$1.89** *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 action of live cattle futures had many scratching their heads. It was anticipated traders would trade the strength in cash last week and the potential for cash this week. That was not the case. Traders may be turning more cautious as the month of December approaches. There is uncertainty whether demand will remain as strong as it has been as we move through the end of the year. There is no doubt cattle supplies are tightening, but will slaughter pace hold as well as it has? Feedlots will look for higher cash again this week as packers are likely short-bought after last week. Offers have not yet been posted. Boxed beef put a negative tone in the market with mixed prices. Choice was $2.70 higher while select was down $5.84. The Commitment of Traders report showed funds as net buyers of 11,146 live cattle contract, bringing their net-long positions to 60,850 contracts.