DTN Early Word Livestock Comments 12/22 06:07

DTN Early Word Livestock Comments 12/22 06:07 Further Gains May Be Difficult The stock market rebound, along with other commodities, spilled over into the livestock complex. Traders made a huge adjustment prior to the reports to be released Thursday. Cash was not supportive to cattle and cutouts were not supportive to hogs. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $195.73 -$0.94* Hogs: Steady Futures: Higher Lean Equiv: $91.65 -$1.58** *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: The rally in the cattle complex seems to have been technical in nature for the most part. The rebound of the stock market and many other commodity markets seemed to spill over into the cattle complex. There is also the fact that the Cattle on Feed report will be released Thursday, but that generally results in trading activity being more subdued as they position themselves ahead of the report. Cash activity certainly did not trigger the rally as cash trade developed Tuesday $1.00 to $3.00 lower. The weakness of boxed beef also did not support the rally with choice down $0.99 and select down $0.75. Feeder cattle futures defied the usual pattern, rallying despite the strength of corn. The Cattle on Feed report is estimated to show on-feed numbers at 99.8%, placements of 103.8% and marketings of 104.5% compared to November 2020.