DTN Early Word Livestock Comments 11/07 06:17

DTN Early Word Livestock Comments 11/07 06:17 Traders To Focus on Market Fundamentals Cattle futures held in positive territory throughout Wednesday but could not maintain the strong gains seen during the session. Hogs moved higher with December again outpacing the rest of the complex. Strong gains in the stock market provided support. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $226.87 -$1.27* Hogs: Lower Futures: Mixed Lean Equiv: $108.06 +$0.72** *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: The focus of cattle traders Wednesday seemed to be the stock market strength. An increasing economy would be beneficial for consumers and possibly increase beef demand. There is much more involved in the workings of the market but this psychological aspect permeated the markets. The bottom line is cash cattle have not yet been traded, leaving traders cautious over continued strength. Boxed beef prices took a hit on Wednesday with choice down $1.62 and select down $2.04. Cash cattle trade should develop Thursday but the direction will be determined by whether feedlots need to move cattle more aggressively or are willing to hold another week.