DTN Early Word Livestock Comments 12/11 06:26

DTN Early Word Livestock Comments 12/11 06:26 Follow-Through Buying May Begin Week It was an interesting close to the week with cattle futures showing solid gains. Lower cash had been factored with traders deciding the discount to cash was too great. Hog futures found some solid footing, nearly eliminating the loss of Thursday. Cutouts posted a strong gain. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $208.79 -$1.14* Hogs: Steady Futures: Higher Lean Equiv: $ 92.82 +$2.00** *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: Cash cattle followed the pattern of the week with Southern trade averaging $3 lower and Northern dressed trade $4 lower. Without any further losses, traders decided the market was overdone due to the discount to cash. This prompted strong buying interest in futures as the day progressed. The fact that it was the end of the week also played a part in short-covering as traders seemed to think the weakness of cash may be nearly finished. There is some thought cash might be no worse than steady this week. It was good to see the market show strength despite USDA reducing the 2023 average steer price this year to $175.55, down $1.75 from November, and the average price for 2024 down $7.00 from their November estimate at $178.00. Boxed beef was lower in both categories with choice down $1.83 and select down $0.93. The Commitment of Traders reports showed funds trimming their long futures positions by 5,802 contracts, bringing their net-long position to 26,889 contracts. Fund sold a net 640 futures contracts of feeder cattle bringing their net short position to 1,819 contracts.