DTN Early Word Livestock Comments 11/19 06:16

DTN Early Word Livestock Comments 11/19 06:16 Livestock Futures May Show Further Support Tuesday Feeder cattle futures continued to lead the way Monday, providing solid support to live cattle. Traders are somewhat cautious over the upside price potential. Hogs managed to close higher but lacked the conviction of traders as they waited to see whether packers will step up more aggressively. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $221.30 +$1.80* Hogs: Higher Futures: Higher Lean Equiv: $103.02 -$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 pushed higher Monday with feeder cattle leading the way. The deferred cattle contracts pushed through and closed above chart resistance, which may result in more technical buying interest. However, the buying was not without underlying fundamental support as feedlots are active buyers in the country, cattle supplies remain tight, and the outlook for cattle prices is strong. The Cattle on Feed report will be released Friday with early anticipation of placements being the highest on record for the month of November. Boxed beef prices were mixed with choice up $3.94 and select down $0.69. The packers purchased cattle last week for deferred delivery as they look ahead to the upcoming holiday week. This may limit their aggressiveness this week.