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DTN Early Word Livestock Comments 11/30 06:29

30 Nov 2023
DTN Early Word Livestock Comments 11/30 06:29 Traders To Balance Oversold Futures With Fundamentals Both cattle and hog futures closed higher. This was not supported by cash or product values, but mostly due to a continued correction of an oversold market. Gains may be tempered a bit today due to cash weakness. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $214.97 -$1.12* Hogs: Lower Futures: Mixed Lean Equiv: $91.46 -$0.83** *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 futures closed higher as short covering and some new buying interest remained prevalent in the market. With cash trade prices likely set for the week, the discount to cash may provide further gains in futures. Cash cattle trade continued the pattern of the week with Southern trade $2 lower than last week. Trade developed in the North at $4 lower than last week. This is expected to the where business for the rest of the week will take place. Weakness of boxed beef may keep a lid on the potential for futures to rebound. Choice cuts were down $1.14 with select down $2.26. Traders are already looking ahead to next week assessing whether the discount to cash should be maintained or whether futures have further upside potential. Trader positioning for the end of the month has likely been accomplished leaving them focusing on fundamentals.