DTN Early Word Livestock Comments 11/20 06:15

DTN Early Word Livestock Comments 11/20 06:15 Cattle Futures Expected Higher Cattle futures closed higher as traders positioned ahead of the report. With the report being neutral to friendly, it is likely futures will trade higher, but upside might be limited. Hogs closed mixed with more pressure on nearby months with cash just not getting better. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $214.95 +$0.23* Hogs: Lower Futures: Mixed Lean Equiv: $95.55 +$2.44** *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: Cattle trade had been dominated by lower cash and traders trying to determine the outcome of the Cattle on Feed report. The Cattle on Feed report was neutral to friendly. The friendly aspect of the report was that placements were 104% of a year ago with the estimate at 106.1%. The fact that the actual was below the estimate is friendly even though it was higher than a year ago. It was within the range of estimates. The neutral aspect of the report was that on-feed numbers were at 102% from a year ago compared to the estimate of 101.9% and marketings were one percent lower than the estimates at 97% of a year ago. With the large decline of futures since the previous report, futures could see a rebound today due to the friendly placement number. It is a holiday-shortened week which could leave packers less aggressive as they have already purchased some cattle for the first week of December. Boxed beef prices were mixed with choice down $0.85 and select up $3.05. The Commitment of Traders report showed funds selling 18,463 of their long futures position bringing their net long position to 37,891. Feeder cattle showed funds with a net long position of 1,319 with funds buying 1,507 contracts during the week.