DTN Early Word Livestock Comments 12/31 06:13

DTN Early Word Livestock Comments 12/31 06:13 Limited Trading Expected Friday Live cattle futures took a breather Thursday as much of the gains in the cash market have been record. There was some disappointment over a few Southern cattle selling at $138, but nothing to be too concerned over. Hog futures close lower with December again taking the brunt of it. However, there was a huge jump in cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $199.25 +$0.02* Hogs: Steady Futures: Mixed Lean Equiv: $98.21 +$7.08** *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: Most of the cash cattle business is likely done for the week, even though Friday is a full futures trading day. Strong prices unfolded in the North this week with cash $3.00 to $5.00 higher. However, there have been limited sales in the South; those sales were somewhat disappointing with feedlots meeting packer bids of $138. That has not been widespread and not likely to open the floodgates Friday. Feedlots have indicated they want $140 and are willing to hold cattle to next week rather than sell for anything lower. Whether packers will give in to their demands, following the lead of Northern trade, will be seen Friday. Weekly export sales of beef were low at only 6,300 metric tons (mt). Boxed beef prices were mixed with choice down $0.45 and select up $1.14. It may be a slow trading day as traders look ahead to celebrating the New Year.