DTN Early Word Livestock Comments 11/29 06:06

DTN Early Word Livestock Comments 11/29 06:06 Short Covering May Continue The livestock complex finally was able to rally with feeder cattle leading the charge. The oversold condition of the market triggered short covering along with the market being overdone to the downside. Tuesday's momentum might carry futures higher today. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $216.09 +$0.15* Hogs: Lower Futures: Mixed Lean Equiv: $92.29 -$3.95** *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: It was a huge turnaround in cattle futures on Tuesday. Feeder cattle posted the greatest gains with the February contract regaining $8.25 of the previous losses. Live cattle futures showed $4.00 gains in some contracts. Traders reacted to the oversold condition of the market and the fact that it was overdone to the downside. The strength was not cash induced as some light trading activity took place as some cattle sold in Texas and Kansas at $175 which is $2 lower than last week. Trading this early in the week is unusual but packers needed to catch up on last week's lighter trade. This may set the precedence for the week, but it is too early to tell. Boxed beef prices were mixed yesterday with choice up $0.92 while select declined $1.45. Traders will try to balance lower potential cash with an oversold market. However, there may be more upside remaining as futures continue to correct.