DTN Early Word Livestock Comments 11/08 06:23

DTN Early Word Livestock Comments 11/08 06:23 Lower Cash Cattle Prices Expected Friday Cattle futures closed higher Thursday, but not due to the exports sales report as those numbers were dismal. The strength was likely due to the support seen in other, outside markets. Hog futures were mostly higher with continued spread trading impacting the December contract. Cash hogs were higher. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $222.99 -$3.88* Hogs: Lower Futures: Mixed Lean Equiv: $103.87 -$4.19** *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: Traders allowed futures to drift higher Thursday despite the low weekly export sales report. Beef sales were dismal at only 8,000 metric tons (mt), a marketing year low and down 43% from the previous week. Cash has not yet traded this week with a greater anticipation of lower prices. The packers had a fair amount of cattle purchased ahead and are not anxious to purchase aggressively this week due to lower boxed beef prices. Price took a huge hit Thursday with choice down $6.13 and select down $3.48. This may increase the resolve of packers to hold for lower cash. Feedlots will make the decision whether to hold cattle for another week and risk yet lower prices or move them this week. Cattle futures have lower cash already factored in, which may leave futures mixed even if cash trades lower.