DTN Early Word Livestock Comments 12/01 05:58

DTN Early Word Livestock Comments 12/01 05:58 Weekly Export Sales May Provide Early Direction Livestock futures moved higher with live cattle showing the least gains of the complex. A limited amount of cattle traded at steady money Wednesday, but that has not necessarily set the tone for the week. Feeder cattle reacted to a lower corn price. Hogs bounced after first opening lower in February and later contracts possibly due to the anticipation of increased demand from China. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $188.25 -$0.03* Hogs: Lower Futures: Mixed Lean Equiv: $95.19 +$1.65** *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: Traders have been patiently waiting for cash cattle to trade before buying into the market. Limited cash activity took place Wednesday at steady prices, but that was enough for traders to at least know cash will trade no worse than steady this week. This generated more aggressive buying, but not enough to result in triple-digit gains. Feedlots are holding for higher prices with $1.00 to $2.00 anticipated. Boxed beef prices were mixed with choice up $0.14 and select down $0.81. Feeder cattle reacted to lower corn prices, posting triple-digit gains. As long as corn prices hold or decrease, feeder cattle will have a chance to move back up to the top end of the trading range, which is about $2.00 higher.