DTN Early Word Livestock Comments 11/09 06:21

DTN Early Word Livestock Comments 11/09 06:21 Lower Cash Cattle Trade Expected Cattle futures began on a dismal note Wednesday but turned higher after fund selling subsided. Traders felt the market was overdone to the downside, increasing buying interest. Hog futures opened lower and closed lower with the December contract showing the greatest loss. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $217.58 -$0.48* Hogs: Lower Futures: Mixed Lean Equiv: $ 93.77 -$1.19** *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: What began as a dismal Wednesday for livestock futures turned positive after fund selling subsided. The three days of liquidation ran its course, but not before significant technical damage was done to the charts. It will be difficult for futures to recover from the losses. Some very limited cattle activity took place Wednesday with some trading in Iowa at $287 dressed and in Texas at $180 live. This may be an indication of lower trade this week, but the light cash activity does not confirm what will take place. However, the expectation is that cash will be lower. Trading activity may be mixed early in the day as more attention might be paid to the World Agricultural Supply and Demand report that will be released. Once those numbers are known, attention will be turned back to livestock fundamentals. Boxed beef was mixed with choice down $1.63 and select up $1.55. Feeder cattle were slightly stronger than live cattle futures as they experienced greater losses on the way down. Any price rebound in the cattle complex might be led by feeders.