DTN Early Word Livestock Comments 11/21 06:05

DTN Early Word Livestock Comments 11/21 06:05 Markets Search for Solid Direction Cattle futures showed both strength and weakness on Monday. This initial reaction to the Cattle on Feed report was bullish with a higher opening, but that was short-lived as it settled down to a tug of war. Hogs tried to move higher but selling pressure pushed them lower into the close as traders could not find solid support. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $215.93 +$0.98* Hogs: Lower Futures: Mixed Lean Equiv: $93.48 -$2.07** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: It was a day of volatility throughout the cattle complex with both higher and lower trade developing after the strong opening. Traders faded the report as it had already been factored in to some extent. The key is going to be where we go from here. Boxed beef was higher with choice up $1.88 and select up $0.25, but prices will need to continue to show strength on a consistent basis before the market may be able to trend higher. Cash trade has not developed yet this week with no bids or offers posted. That may be revealed today as it is a holiday week and packers will want to do business before Thursday. However, that may not cause them to be more aggressive as their margins are below a year ago and the 3-year average.