DTN Early Word Livestock Comments 11/08 06:12

DTN Early Word Livestock Comments 11/08 06:12 Cattle May Extend Losses Cattle futures plummeted Tuesday as selling pressure ran rampant. Fund liquidation was triggered after the market initially traded higher. Hogs gave back earlier gains as traders were cautious over continued cash and cutout strength. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $218.06 -$0.84* Hogs: Lower Futures: Lower Lean Equiv $ 94.96 -$3.84** *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: Heavy fund liquidation continued after a brief period in positive territory. Liquidation generally runs its course over three days, indicating some follow-through selling could continue Wednesday. The selling so far this week has dimmed the outlook for cash with expectation of $1 to $2 lower. With boxed beef lower Tuesday, it gives the impression demand is faltering. Choice cuts declined $1.34 with select down $0.88. Packer bids and feedlot offers have been virtually nonexistent. It is likely feedlots will lower their bids from last week. Even though cattle numbers remain tight and not expected to change anytime soon, slower demand will offset the tighter supply. Cash is not expected to trade Wednesday. Feeder cattle exhibited exceptional pressure with futures nearly falling $6.00 in some contracts in a brutal turn of attitude.