DTN Early Word Livestock Comments 12/04 06:16

DTN Early Word Livestock Comments 12/04 06:16 Cattle Futures May Trade Sideways Wednesday Cattle futures reversed on Tuesday, taking back most -- if not all -- of the losses from Monday. Feedlots will be looking for higher cash prices this week with traders thinking cash will be steady at worst. Hog futures closed mixed Tuesday as traders were uncertain over the ability of futures to find continued underlying support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.01 -$1.43* Hogs: Lower Futures: Mixed Lean Equiv: $95.56 -$3.05** *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: Cattle futures found buying interest on the break Tuesday. This support did not stem from strong boxed beef, but from the anticipation that cash may trade no worse than steady this week. Feedlots were able to hold for higher prices last week and have their sights set on higher prices this week. They may be willing to hold cattle longer if packers do not pay higher prices. The problem is packers had purchased some cattle ahead, slaughter continued at a reduced pace, and boxed beef prices fell Tuesday. Choice fell $3.68 with select down $1.67. Traders bought the break in anticipation of continued tight cattle supplies as there is little indication of rebuilding the cattle herd.