DTN Early Word Livestock Comments 12/05 06:20

DTN Early Word Livestock Comments 12/05 06:20 Livestock Futures May Trade Higher Thursday as Traders Buy The Weakness Lower prices dominated the day on Wednesday as traders had little to hang their hats on. No cattle were traded in the cash market and boxed beef provided little direction. Hogs fell back with volatility increasing, possibly suggesting trader uneasiness at these prices. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $222.52 -$0.49* Hogs: Lower Futures: Mixed Lean Equiv: $95.55 -$0.01** *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: Live cattle futures added another day to the recent sideways trading pattern that has developed. Traders are waiting for cash to provide direction. Cash cattle have yet to trade with packers and feedlots determined to accomplish business on their terms. Feedlots seem current and can afford to carry cattle over for another week while the packers have some cattle already purchased, possibly limiting their need to be aggressive. Boxed beef prices provided little direction with choice down $2.50 and select up $2.37. There has been no further news about the restriction of cattle imports from Mexico which may provide continued support to the market. Feeder cattle futures fell back Wednesday but the weakness is not likely to trigger further liquidation. Demand for feeder cattle at auctions remains strong.