Cattle futures opened near unchanged before trading lower for most of the session yesterday, with the nearby Dec live cattle contract down almost $2.00 by the end of the afternoon. As noted yesterday, Dec futures left a large chart gap dating back two weeks which goes as low as $139.55 that the market now seems intent on filling. I also sense a little unease about the boxed beef market which has ticked lower this week despite slowing production schedules and a normal seasonal trend for strength into late November. On the cash front, I've yet to see any real packer bids yet this week, with producers seemingly expecting something $1-2 higher than last week's $138 (South) trade. Even with the weakness seen over these past two sessions, Dec futures at $140.22 + average basis this week of +$0 would seem to be anticipating a cash market near $140.
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