DTN Early Word Livestock Comments 12/14 06:20

DTN Early Word Livestock Comments 12/14 06:20 Markets May Pause Until Cash Provides Direction Cattle were able to find buying interest pushing numerous contracts to new highs but could not hold those highs. Boxed beef prices faltered after some strength in the previous few days. Hogs also found buying interest as cutouts showed strength which may be tied to buying for the holidays. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $188.00 -$1.06* Hogs: Higher Futures: Mixed Lean Equiv: $95.99 +$4.20** *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 futures were finally able to push to new contract highs. Only February and December 2023 contracts failed to move high enough to accomplish the task. Strength did not stem from boxed beef prices as they were lower with choice down $2.07 and select down $0.22. This ended the recent streak of higher boxed beef prices. Strong futures regaining a potential upward trend will give feedlots confidence to ask for more this week. However, packers are looking at reduced slaughter needs through the end of the year and may not be willing to pay more. Packers do not seem to have many cattle purchased ahead, but they may not need to through the rest of the year. The Consumer Price Index was less than expected which rekindled the idea inflation may begin to temper. The Fed's decision on the amount interest rates will be increased will be seen today.