DTN Early Word Livestock Comments 12/02 06:05

DTN Early Word Livestock Comments 12/02 06:05 Mixed Trading Expected as Futures Have Adjusted Live cattle were a bit of a head-scratcher with futures showing little trading interest even though cash traded higher. It seemed as if traders were mesmerized by the strong gains in hog futures rather than focusing on cash cattle. Hogs regained their losses of the week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $187.59 -$0.66* Hogs: Lower Futures: Mixed Lean Equiv: $94.34 -$0.81** *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: It was anticipated cash cattle would trade higher and that is what unfolded. Southern cattle traded mostly steady with higher trade possible today as some feedlots passed on those bids holding for higher cash. Northern dressed cattle were $3.00 to $4.00 higher. Packers are finding feedlots have a strong resolve to settle for nothing less than steady cash. This did not impact futures as would have been expected. Traders seem reluctant to push futures above contract highs over concern of slowing demand into next year. Boxed beef was lower with choice down $1.31 and select down $0.01. Feeder cattle futures found support from strong prices being seen at auctions.