DTN Early Word Livestock Comments 11/07 06:13

DTN Early Word Livestock Comments 11/07 06:13 Cattle Futures May Bounce Live cattle gapped lower on the open Monday and never looked back with the market in a bearish grip from the start. Both live cattle and feeder cattle futures closed with losses of over $3.00 in some contracts. Hogs were able to shrug off any outside pressure from the selling of cattle, closing higher with fundamental support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $218.90 -$0.65* Hogs: Steady Futures: Higher Lean Equiv: $ 98.80 +$4.33** *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: Selling in cattle erupted at the beginning of trading Monday with pressure gaining as prices fell. The cattle market might be in trouble, being unable to move back up and close the chart gaps technically while fundamentally seeing the potential for the slowing of demand. Boxed beef prices were lower with choice down $0.62 and select down $1.65. There is some optimism for higher cash this week, but with the pressure early on futures and the trend for lower boxed beef, steady cash may be a victory. Bids or offers have not yet been revealed. It will be an interesting rest of the week as the trade will be wary of next Friday's Cattle on Feed report.