DTN Early Word Livestock Comments 12/06 06:28

DTN Early Word Livestock Comments 12/06 06:28 The Trend May Be Set for Lower Cash The cattle complex found buying interest on Tuesday due to the discount it was carrying to cash. However, some cash cattle trade surfaced yesterday but unfortunately, it was lower. Hogs showed weakness as packers have not shown much interest in buying aggressively. Weekend demand was not as good as hoped. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $211.89 -$1.55* Hogs: Lower Futures: Mixed Lean Equiv: $92.12 +$0.24** *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: Buying interest surfaced in the cattle complex resulting in both live cattle and feeder cattle futures basically eliminating the losses of Monday. Traders looked to bottom-pick the market in the hopes that the oversold condition would provide some profit on a bounce. Futures hold a discount to cash, but that discount is now less than it was over the weekend. Some light cash trade took place yesterday at $171 live with some dressed trade in Nebraska at $271. These are $3 to $4 lower than last week. Feedlots are not banding together to hold out for at least steady prices but wanted to move cattle rather than risking further losses. Boxed beef did not help matters any with choice down $1.24 and select down $3.70. The trend of boxed beef is lower reflecting demand weakness.