DTN Early Word Opening Livestock 11/01 06:27

DTN Early Word Opening Livestock 11/01 06:27 New Month, New Direction? Following the pullback in cattle trade Thursday, traders are looking for end-of-week clarity. Will early November trade develop on recent cattle support, or change course as we enter Thanksgiving month? By Rick Kment DTN Livestock Analyst Cattle: Higher Futures: Mixed Live Equiv: $148.61 +0.76* Hogs: Lower Futures: Mixed Lean Equiv: $ 80.91 +0.61**** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Packers and feeders still have a lot of work to do before the end of the week. Although a few additional cattle sold Thursday in the South steady with Wednesday's rally of $2 per cwt higher than last week, a lot of cattle still need to find a home before the end of the day. Packer interest should improve through the morning, although it could be mid- to late-afternoon before the two sides can agree on price levels and active trade develops. Both sides will continue to hold their line through much of the morning with asking prices expected around $114 to $113 live in the South and $180 to $182 dressed in the North. Early bids are not likely to change significantly from those passed over the last couple of days. Mixed trade is expected Friday morning, focusing on the pullback, which developed Thursday. The losses can easily be explained away as end-of-month profit taking, given the recent market rally and expectations through the complex that a correction was due. Uncertainty remains if buyers are yet willing to step back into the complex, or if they feel additional market pressure is in store through the end of the week. Even if prices continue to shift lower Friday, this does not indicate aggressive long-term pressure will follow next week, as traders still have to make a decision if prices will continue higher in early November, or establish a sideways trend near these recent highs. Friday slaughter runs are expected at 116,000 head.