DTN Early Word Livestock Comments 12/08 08:23

DTN Early Word Livestock Comments 12/08 08:23 Hogs are Ready for a Bounce Only December live cattle and December lean hogs were able to eke out a higher close. Live cattle futures traded in a relatively tight range. Traders have again decided to wait for cash to trade before committing to a direction. The uncertainty of cash and cutouts due to reporting problems left hog traders on the defensive. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $200.75 -2.68* Hogs: Steady Futures: Mixed Lean Equiv: Unavailable** *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: Traders are trying to balance the significant weakness of boxed beef against the strong potential for higher cash. Feedlots are looking for higher prices again this week, posting offers at $3.00 higher. Yes, cattle supplies look like they may tighten next year, but packers are dealing with the here and now. Showlists are larger, which may leave packers less aggressive. However, demand is strong and they will need to purchase for nearby processing needs as well as for the next few weeks. Their resolve will be tested again. It is anticipated cash business will develop Wednesday. Cutouts may be a drag on the market with choice down $4.50 and select down $2.17 Tuesday.