DTN Early Word Livestock Comments 12/13 06:15

DTN Early Word Livestock Comments 12/13 06:15 Ongoing Demand Provides Uncertainty Cattle traded in a rather narrow range but climbed closer to technical resistance. This may cap trade unless cash trades higher. Feeder cattle were able to hold in the face of higher corn prices. Hogs closed mixed, unable to find support from cash or cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $189.06 +$4.93* Hogs: Higher Futures: Mixed Lean Equiv: $91.79 -$1.62** *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: Boxed beef prices may have found a bottom for the time being, which may provide support to the market until direction is seen from cash trade. Futures have moved near resistance and contract highs but have yet to move through it. It may take higher cash trade this week to accomplish that purpose, but it is possible futures may lead the way. A move to new contract highs could bring more aggressive buying into the market. Current showlists are mixed and cash cattle are not expected to trade Tuesday, leaving traders uncertain of direction. Boxed beef prices were substantially higher Monday with choice up $8.09 and select up $4.42. This should support the market until cash activity develops. Feeder cattle held surprisingly well, even though corn futures were higher. Lower supplies keep futures trending higher.