DTN Early Word Livestock Comments 12/06 06:27

DTN Early Word Livestock Comments 12/06 06:27 Cash Cattle Expected to Remain Higher Friday Cattle futures came under pressure Thursday as traders did not like the export sales number at a marketing year low and down 97% from the previous week. Beef prices may be just too high. Hogs held their ground despite cash and cutout weakness. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $222.15 -$0.37* Hogs: Lower Futures: Lower Lean Equiv: $94.59 -$0.96** *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: Traders did not like the weekly export sales report Thursday and liquidated some positions on the idea that current prices are too high, curtailing international demand. Weekly export sales were a paltry 100 metric tons (mt), down 97% from the previous week and the 4-week average. Domestic demand has been holding well but high food prices may also impact demand. Boxed beef prices were lower Thursday with choice down $0.49 and select down $0.60. Cash cattle did not trade during the trading period but did late in the day with Northern dressed cattle $2.00 higher. Southern cattle have yet to trade but likely will trade higher as well. This should provide a boost to the market as futures would adjust higher to remain in line with cash. Feeder cattle futures look as if they may see a further price correction if live cattle are unable to provide needed support.