DTN Early Word Livestock Comments 11/05 06:12

DTN Early Word Livestock Comments 11/05 06:12 Livestock Futures May Find Little Direction Tuesday Trader buying interest remained subdued Monday, leaving futures lower for cattle and mixed for hogs. There may be little to generate buying interest in cattle until cash trade takes place. Hogs are balancing technical traders nervous over the record-long positions and packer interest. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $228.39 +$0.73* Hogs: Higher Futures: Mixed Lean Equiv: $109.92 +$0.04** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 drifted lower through the day as traders did not have much fundamental news to provide direction. It may be difficult for cattle futures to regain the losses of the past two weeks. Traders may be looking over their shoulders at what took place a year ago when futures fell substantially during November and will remain cautious. There will be no cash cattle trade Tuesday as packers and feedlots have little reason to do business this early in the week. There is concern the cash prices will not perform much better than last week. The packers continue to hold the line on slaughter, attempting to improve margins. Boxed beef prices showed some strength Monday with choice up $0.57 and select up $2.13. Feeder cattle are attempting to build support. Prices at auctions are variable and may remain that way through the end of the year.