DTN Early Word Livestock Comments 12/02 06:18

DTN Early Word Livestock Comments 12/02 06:18 Traders May Begin Week With Caution Live cattle did not show much volatility Friday with lighter trading activity and futures coasting into the end of the week and the month. Feeder cattle showed greater strength on positive fundamentals. Hogs could not hold positive momentum as lower cash put pressure on the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $222.64 -$0.36* Hogs: Higher Futures: Mixed Lean Equiv: $96.26 +$1.40** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Last week was positive for cattle with cash trading significantly higher. Southern cattle sold for $3.00 to $4.00 higher while Northern dressed cattle traded as much as $5.00 higher. Packers needed cattle and were not shy about bidding up to obtain them. It will be interesting to see the direction cash takes this week as the market moves through December. Boxed beef prices were steady to higher with choice down $0.74 and select remaining unchanged from the previous day. Weekly export sales were a paltry 4,800 metric tons (mt) and hopefully are not indicating that international buyers are backing away due to high prices. Feeder cattle showed greater strength, making new highs Friday as they continue to push toward contract highs. Support continues to stem from the restriction of cattle imports from Mexico.