DTN Early Word Livestock Comments 11/18 06:22

DTN Early Word Livestock Comments 11/18 06:22 Mixed Trading Expected to Begin Week Feeder cattle futures led the charge Friday posting triple-digit gains with January showing the greatest strength. Live cattle were steady to higher but lacked conviction. Hog futures posted a second day of weakness as the market corrected from being overbought. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $219.50 -$0.34* Hogs: Steady Futures: Mixed Lean Equiv: $103.06 +$3.08** *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: Feeder cattle could be likened to a sleeping giant that awakened Friday. Feeder cattle generally follow the lead of live cattle, but they were the leader Friday. Strong demand in the country continues to support futures. Feeder cattle supported live cattle as the weakness of cash and cutouts kept December live cattle unchanged. The market had adjusted to Southern cattle trading $2.00 lower and Northern dressed cattle trading $3.00 lower. Boxed beef was lower with choice down $0.46 and select down $0.52. Weekly export sales improved over the previous week, but domestic demand will drive the market this week. Feedlots may be willing to sell again this week as the following week is Thanksgiving with regular business disrupted. The Commitments of Traders report showed funds adding 5,590 futures contracts in live cattle, bringing their net-long position to 107,043 contacts. They added 951 long contracts in feeder cattle, bringing their net-long position to 11,081 contracts.