DTN Early Word Livestock Comments      11/06 06:15
   Follow-Through Selling Will Pressure Futures

   The carnage resumed in cattle futures Wednesday with Katie-Bar-the-Door
selling activity. The uncertainty was too much for traders holding long
positions and they wanted to liquidate. Hogs drifted with contracts closing
mixed and trading on their own fundamentals, which are not providing much for
traders to get excited about.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower             Futures: Lower     Live Equiv: $274.49 +$0.13*

   Hogs: Lower               Futures: Mixed     Lean Equiv: $103.78 -$1.63*

   *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:

   You can take your pick on what the negative influence on the cattle market
was Wednesday. The uncertainty of the Mexican border reopening, as mentioned by
the president again. The controversy surrounding the funding of SNAP of which
is now to be funded to some extent. The Supreme Court began reviewing the
legality of Trump's tariffs with the probability of the tariffs surviving being
not very good. Fund traders do not like an excessive amount of uncertainty and
pulled the plug on more long positions. However, futures limit-down prohibited
further liquidation, which may carry over to Thursday. The damage has been done
and cattle prices will have difficulty regaining the losses. Packers will use
the pressure on futures to their advantage and bid lower for cattle. Some light
trade on Wednesday was lower, pointing to lower prices this week. Boxed beef
prices were mixed with choice up $0.68 and select down $1.00.