DTN Early Word Livestock Comments 12/19 06:15

DTN Early Word Livestock Comments 12/19 06:15 Livestock Futures May Remain Supported Cattle futures closed higher Monday but fell back from the highs of the day. Traders remain reluctant to buy into the market for a longer term as demand needs to improve. Hogs showed some spread trading but not to any great extent. Mixed fundamentals may keep upside potential limited. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $210.45 -$0.69* Hogs: Steady Futures: Mixed Lean Equiv: $ 90.59 -$0.36** *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: Cattle futures were much stronger earlier Monday as traders were aggressive at the opening in anticipation of steady to better cash this week. The bloom came out of the market as Monday progressed. Futures closed higher but well off the highs. There was no cash activity, leaving traders anticipating what the market would do. It will be interesting to see how cash trade will develop this week as it is the week prior to the holiday and it is the week of the Cattle on Feed report. Traders may not want to be very exposed in the market moving into the report and then a three-day weekend. Boxed beef just cannot seem to find consistent support with choice down $2.71 and select up $2.90.