DTN Early Word Livestock Comments 12/13 06:45

DTN Early Word Livestock Comments 12/13 06:45 Livestock Futures May Face Headwinds Monday The livestock complex closed higher across the board on Friday led by the strength of lean hog futures. The higher close for cattle was a gift given the fact that cash cattle traded steady to $2.00 lower for the week. Hog futures seemed to be technically driven rather than fundamentally. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $198.12 +0.12* Hogs: Steady Futures: Higher Lean Equiv: $ 92.95 -0.77** *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: Live cattle futures do not look as exciting as they had for a period of time. The uptrend in February has been violated, leaving it vulnerable to further weakness. Further weakness could take place this week if cash does not perform any better than last week. In fact, the expectation for cash this week is steady at best with the potential to see further weakness. Packers have cattle purchased for deferred delivery into the holiday period when reduced slaughter levels will slow their need to purchase aggressively. Packers will work on obtaining cattle supply for further out past the holiday period. Feedlots might be more anxious to sell on the fear that lower cash prices may unfold over the next few weeks.