DTN Early Word Livestock Comments 11/22 06:16

DTN Early Word Livestock Comments 11/22 06:16 Traders Manage Positions Ahead of Cattle on Feed Report Friday Feeder cattle futures closed higher Thursday while live cattle closed lower. There may be mixed trading Friday due to the upcoming Cattle on Feed report and higher cash cattle trade late Thursday. Hog futures were higher but may struggle under increasing bearish fundamentals. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $220.44 +$0.60* Hogs: Lower Futures: Lower Lean Equiv: $99.02 -$1.53** *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 were cautious in live cattle futures Thursday as export sales were not exceptional and the upcoming Cattle on Feed report provided uncertainty. However, cash cattle began trading after the close at $1.00 to $2.00 higher. There were a few dressed sales marked at $3.00 higher. This was a bit of a surprise and may increase futures buying interest Friday despite the Cattle on Feed report to be released this afternoon. Futures may also find support from higher boxed beef prices with choice up $0.40 and select up $1.93 Thursday afternoon. Feeder cattle futures continued to remain stronger than live cattle. The November contract went off the board on Thursday with January moving to the front-month. USDA will release the Cattle on Feed report at 2 p.m. CST today. The estimates are for on-feed as of Nov. 1 at 99.9% with a range of 99.5% to 100.1%. October placements are estimated at 103.3% with a range of 101.4% to 107.0%. Marketings in October are estimated at 105.1% with a range of 104.7% to 105.4%.