DTN Early Word Livestock Comments 12/17 06:05

DTN Early Word Livestock Comments 12/17 06:05 Limited Volatility Expected Friday Better weekly export sales compared to the previous week. provided sufficient buying interest from traders to push the market higher in most contracts. There were a few contract months in cattle, which closed lower but some stability was welcomed after the significant decline of cash cattle this week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $196.37 +1.50* Hogs: Lower Futures: Higher Lean Equiv: $ 98.25 +3.66** *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: Weakness in live cattle futures that was evident during the day, was finally overcome allowing futures to close mostly higher. One could say that this was the result of a much better weekly Export Sales report showing sales of 17,100 metric tons (MT), but futures fell an hour after trading began before buying kicked it. The sales report ultimately had an impact, allowing contracts to close higher. However, lower lows and lower highs day keeps the downtrend intact. Cash trading in the South at $3.00 to $4.00 lower than last week and steady to $3.00 lower in the North does not bode well for the market moving into the holiday period. With higher weights, packers are back in the driver's seat and will likely attempt to purchase cattle at lower prices next week. The increase of boxed beef with choice up $2.71 and select up $0.69 was somewhat responsible for the minor futures gains Thursday.