DTN Early Word Livestock Comments 12/16 06:05

DTN Early Word Livestock Comments 12/16 06:05 Livestock Futures May Coast into the Weekend Livestock futures saw further pressure yesterday even though cash cattle traded mixed and boxed beef showed strength. Hogs suffered triple-digit losses despite higher cash, cutouts, and exports sales. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $188.25 +$2.39* Hogs: Higher Futures: Mixed Lean Equiv: $90.34 +$1.22** *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: Feedlots got the upper hand forcing packers to pay steady to higher cash again this week. That may come to an end as slaughter is slowing. Of course, slaughter will be lower during the holidays, but packers will be slowing speeds as margins are very poor. Slowing slaughter pace should improve margins, but with tighter cattle numbers, it still may not have the desired results of keeping cattle prices higher. Traders are being cautious with futures possibly not moving to new highs through the end of the year. Boxed beef showed gains in both categories with choice up $4.23 and select up $1.82. Export sales were good at 10,900 MT. Feeder cattle futures tested minor support from earlier this week and were able to bounce keeping the market sideways.