DTN Early Word Opening Livestock

 
Cattle: Steady to $1 lower Futures: Mixed Live Equiv: $140.61 -0.37* 
Hogs: Steady to $1 lower Futures: Mixed Lean Equiv: $ 75.18 -1.34** 
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

Coming off of a week in which cattle and feeder futures prices broke to new lows and cash cattle were steady to $2 lower, prices will be looking for some form of support this week ahead of next week's Thanksgiving holiday. This week's showlist is likely to be a little larger than last week.

In spite of last week's lower cattle prices and falling pork carcass values, December hog futures continue to hold a sideways trend with support near $51. In the February contract, it will be interesting to see if prices can hold support near $59, the October low.

	BULL SIDE		BEAR SIDE
1)	Beef production is expected to be lower in November.	1)	Boxed beef prices were lower last week and cash trade a little lower.
2)	Next support level is $111 for December cattle and $114 for February.	2)	New one-month low in December cattle and a new three-month low in January feeders speak for themselves.
3)	Year-to-date pork production is up just 2.7% so far.	3)	Last week's 2.59 million head hog slaughter is keeping retail prices under pressure.
4)	Pork export pace continues to do well, considering trade issues.	4)	Resistance is at $60 in December hogs and has been firm, so far.

Todd Hultman can be reached at todd.hultman@dtn.com

Follow him on Twitter @ToddHultman

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