DTN Early Word Livestock Comments 11/26 06:57

DTN Early Word Livestock Comments 11/26 06:57 Livestock Futures Should Hold Support Tuesday The cattle complex was on fire early Monday but fell from the highs as the day progressed and traders settled down as they digested the implications of restricted imports from Mexico. Hogs made new contract highs before settling back into the close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $222.07 +$1.54* Hogs: Higher Futures: Higher Lean Equiv: $99.25 +$1.56** *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 cattle market exploded early Monday on the news of the restriction of cattle imports from Mexico. A discovery of an animal with the New World screwworm prompted the announcement and the restriction. After the initial reaction to the news subsided, futures contracts lost their luster with live cattle closing with losses. Traders settled back, developing more of a wait-and-see attitude. Feeder cattle closed with triple-digit gains as they continued to outpace live cattle. Futures moved above technical resistance early but closed below that level in the end. The October Cold Storage report showed inventories of beef about as expected. Boxed beef prices were higher with choice up $2.30 and select up $1.67. Cash cattle may begin trading Tuesday as packers may want to take care of most of their purchases before the Thanksgiving holiday.