DTN Early Word Livestock Comments 11/14 06:34

DTN Early Word Livestock Comments 11/14 06:34 Choppy Trade Expected Tuesday Livestock futures were higher across the board Monday with feeder cattle and nearby hog contracts posting triple-digit gains. Cattle got a boost from being oversold. Hogs thrived Monday on higher cutouts from Friday and the prospect of better cash. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $216.59 -$1.01* Hogs: Higher Futures: Lower Lean Equiv: $ 93.96 -$2.65** *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: The strange aspect of live cattle is there had been a large price decline, but the Commitments of Traders report showed funds increasing their net-long positions by 325 contracts, bringing their net-long positions to 56,354 contracts. This report is for the week ended Nov. 7 after there had been 3 days of liquidation. This indicates there must have been a significant number of small traders that sold heavily. This may provide some support for the market. Boxed beef prices were mixed with choice down $2.61 and select up $1.82. This may keep a bit of pressure on the market as boxed beef prices continue to struggle. There was nothing else to provide direction for traders, closing higher but somewhat in the middle of the trading range for the day. Feeder cattle posted triple-digit gains, rebounding from being oversold. The upside may be limited as traders may be cautious ahead of the Cattle of Feed report. The Commitments of Traders showed funds selling 864 futures, moving to a net short of 188 contracts.