DTN Early Word Livestock Comments 12/29 06:05

DTN Early Word Livestock Comments 12/29 06:05 Further Gains Expected Wednesday for Livestock Complex Front-month December live cattle and the feeder cattle complex closed with triple-digit gains. Higher cash and boxed beef prices supported the market. Hogs struggled in nearby months but maintained their footing in later contracts. Robin Schmahl DTN Contributing Analyst Cattle: Higher; Futures: Higher; Live Equiv: $198.55 +$0.28* Hogs: Steady; Futures: Higher; Lean Equiv: $93.73 +0.56** *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: Packers needed cattle and raised bids in order to obtain them on Tuesday. Dressed cattle in the North traded as much as $3.00 higher at $220. This pushed front-month December live cattle futures up $1.17 into the close. December had to stay in line with cash as the contract settles on Friday. Boxed beef also provided some support with choice up $0.19 and select up $0.91. More business is expected to be done across the complex as feedlots now know what they can get and packers know what they need to pay. Business will likely want to be done earlier this week rather than later due to holiday and the end of the year. Feeder cattle futures posted a strong close as support stemmed from higher cash cattle as well as significant weakness of corn prices.