DTN Early Word Livestock Comments 11/03 06:16

DTN Early Word Livestock Comments 11/03 06:16 Livestock Futures May Settle Back It was an explosive Thursday in the livestock markets with feeder cattle leading the charge followed by hogs. Live cattle were strong but did not show quite the exuberance. Higher cash cattle are likely factored in if that develops. Hogs pushed through resistance. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.29 +$0.30* Hogs: Higher Futures: MIxed Lean Equiv: $ 94.67 +$0.91** *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: Feeder cattle opened higher and never looked back. Traders seemed to be on a mission to regain more of the losses suffered two weeks ago. Traders finally got the confidence they needed to buy aggressively into the market. This confidence may have come from the very-limited cash cattle trade so far this week, which may indicate higher cash prices as feedlots are holding out. Some strength may have come from the strong stock market as well. Packers do not want to pay more this week but may need to step up as feedlots seem to be resolved to hold. Boxed beef is not providing solid support so far this week with mixed prices Thursday. Choice cuts were up $2.35 while select was down $4.21. The chart gap was closed in the December contract while gaps in later contracts remain.