DTN Early Word Livestock Comments 11/10 06:20

DTN Early Word Livestock Comments 11/10 06:20 Follow-Through Selling May Continue Just when it seemed fund selling had run its course, the other shoe dropped, triggering rampant liquidation. The recent decline has been worse than the aftermath of the October Cattle on Feed report. Hogs continued to defy spillover pressure from cattle and held well despite struggling cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $217.51 -$0.07* Hogs: Lower Futures: Lower Lean Equiv: $ 94.13 +$0.36** *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 led the charge lower with contracts breaking below support from early May on Thursday. The decline over the past two months has been brutal with feeder cattle losing nearly $44. This is not going to be regained and it seems like any bounce in futures will be a selling opportunity. Lower cash cattle trade developed, and it was lower than earlier indications. Southern cattle traded $4 lower with Northern dressed cattle trading as much as $5 lower. Feedlots will need to decide if they will sell at current bids or hold them over another week, which may not net much benefit in the current market environment. Mixed boxed beef prices did not provide much support with choice up $0.67 and select down $1.61. Cattle futures are oversold technically, but likely will not bring buyers into the market soon.