DTN Early Word Livestock Comments      11/18 06:21
   Cattle Futures May Settle Back

   Cattle futures pushed higher Monday as traders felt more comfortable buying
due to the rebound from technical support on Friday. But even with the gains,
it did not turn the trend higher. Hogs were mixed in nearby months, but showed
strength in late 2026 contracts. Support might be developing in those contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower             Futures: Lower     Live Equiv: $269.89 +$0.30*

   Hogs: Higher              Futures: Higher    Lean Equiv: $103.12 -$0.21*

   *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 gained some confidence on Monday to buy into the contracts with
feeder cattle leading the charge. Futures bouncing from technical support on
Friday increased the interest of traders to buy into the market. However, the
recent volatility may be moving traders to take short-term positions rather
than buying and holding. It may be difficult for futures to regain the losses
of the past month as market fundamentals and perceptions have changed. The
weakness of cash cattle prices recently is expected to continue this week as we
move closer to Thanksgiving. Traders will also be cautious over the Cattle on
Feed report that will be released on Friday. Boxed beef prices were mixed on
Monday, with choice down $0.32 and select up $2.06.