DTN Early Word Livestock Comments 12/08 06:16

DTN Early Word Livestock Comments 12/08 06:16 Cash Cattle Trade Will Set Direction Live cattle again moved in a narrow trading range uncertain of cash. Limited trade took place below last week's prices, which may keep caution in early futures trading activity. Hogs followed through to the downside but were able to close higher in most contracts on stronger cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $184.16 +$3.22* Hogs: Lower Futures: Mixed Lean Equiv: $92.37 -$5.37** *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 just could not get excited about the prospect of cattle prices this week after some limited cash trading took place $2.00 lower. It will be interesting to see how packers will approach the market Thursday. They will need to purchase cattle to procure the desired numbers for the week. However, they may begin to slow chain speed as has been anticipated. Boxed beef prices jumped with choice up $6.31 and select up $0.63. The jump of choice cuts, although impressive, only reversed the loss that took place on Monday with select showing continued weakness. Traders will be cautious over getting too carried away only on boxed beef prices Wednesday and will wait for cash to provide further direction. Weekly export sales may provide some direction but may not be the focus.