DTN Early Word Livestock Comments 12/06 06:14

DTN Early Word Livestock Comments 12/06 06:14 Trades Wait for Fundamental Direction Live cattle traded in a narrow range Monday as traders were uncertain over cash trade this week and whether packers may begin to reduce slaughter. Hogs were in a similar pattern, closing mixed for the day with cutouts taking back the previous day's gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $181.69 -$4.00* Hogs: Higher Futures: Mixed Lean Equiv: $94.38 -$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: Live cattle could not find the support needed to push futures significantly higher. Nearby contracts could not break to new highs while June and later were able to make new contract highs as optimism remains. The key will be slaughter pace. It is anticipated packers may reduce slaughter pace, which could limit what they will be paying for cattle. So far demand has been good, but the sharp decline of boxed beef Monday is concerning. Boxed beef had been struggling but choice falling $6.62 and select down $3.45 was not a good sign. However, tightening supplies of cattle may keep prices supported even if slaughter pace decreases. Feeder cattle posted strong gains for the fourth consecutive day, moving higher due to the weakness of corn.