DTN Early Word Livestock Comments 12/05 06:12

DTN Early Word Livestock Comments 12/05 06:12 Outside Markets to Influence Trading Livestock closed with positive gains in all contracts except for December hogs on Friday. December hog futures have 1 1/2 weeks remaining to trade and will need to hold close to cash. Pork cutouts jumped to end the week. Live cattle were moderately higher despite a nice increase in Northern dressed prices. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $185.69 -$1.90* Hogs: Steady Futures: Higher Lean Equiv: $96.86 +$2.48** *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: Southern cattle could not squeeze out any higher cash with prices at $155 and steady with the previous week. Northern dressed cattle traded upwards of $4.00 higher, but it failed to light a fire under the trade. December live cattle futures were only up $0.27 for the week. Traders seem to be very cautious over putting too much premium in the market. This may carry over Monday with trade likely choppy as traders wait for showlists, boxed beef prices and cash to determine direction. The bullishness of steady-to-higher cash was offset by somewhat lackluster boxed beef prices. Choice cuts were $3.65 lower with select cuts down $0.44. There remains concern that demand will slow through the end of the year, which may impact cash cattle trade. The Commitment of Traders report showed funds as sellers of 2,105 futures, reducing their net-long position to 58,745 contracts. Monday is the first notice day for December live cattle.