DTN Early Word Livestock Comments 11/15 06:15

DTN Early Word Livestock Comments 11/15 06:15 Livestock Futures May See Further Pressure Friday Most livestock contracts closed lower Thursday with disappointment over cash prices and product prices. There was no category that did not come under pressure. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $219.84 -$1.94* Hogs: Lower Futures: Lower Lean Equiv: $99.98 -$3.19** *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: The hope for steady cash trade in the cattle market dissipated Thursday and Southern live cattle traded $2.00 lower and Northern dressed cattle traded $3.00 lower. This triggered selling in the futures market with the December live cattle contract closing at the lowest price since Sept. 19. Feedlots did not want to hold cattle over for another week and risk yet lower prices. Further cash sales Friday may remain at the same prices. The weakness of boxed beef remains a concern and will not provide support to the market. Boxed beef prices fell with choice down $3.14 and select down $2.00. Beef packer margins are similar to a year ago and remain significantly below the 3-year average. This will keep packers on the defensive as they try to improve margins.