DTN Early Word Livestock Comments 11/06 06:28

DTN Early Word Livestock Comments 11/06 06:28 Traders Will Assess Weekend Product Demand Cattle did not hold up on Friday as traders reduced long positions into the weekend fueled by disappointment in cash trade. Hogs faltered as the day progressed with December showing the most volatility with cash under pressure. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $219.55 -$1.74* Hogs: Lower Futures: Mixed Lean Equiv: $ 94.47 -$0.20** *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: Cattle spent a brief period in positive territory but succumbed to the disappointment of cash and traders liquidating long positions ahead of the weekend. There were hopes of higher cash trade last week, but the result was an average of $185 in the South and $292 for Northern dressed cattle. This is generally steady with the prior week. There were few traded at $294, but those were late. Traders likely will not buy back into the market with any aggressiveness to start this week but will wait to see how boxed beef demand was over the weekend. Boxed beef prices were lower Friday with choice down $2.19 and select down $2.33. Feeder cattle lead the losses Friday of over $2.00 in nearby months. The January and March contracts failed to close the chart gaps, likely triggering sell orders sending the market lower. The Commitment of Traders report showed funds liquidated 6,674 live cattle futures positions, bringing their net-long futures positions to 56,029 contracts. Funds sold 2,660 feeder cattle futures contracts, moving their net-long futures positions to 676 contracts.