DTN Early Word Livestock Comments 12/10 06:24

DTN Early Word Livestock Comments 12/10 06:24 Mixed Trading Activity Anticipated Tuesday Cattle futures were generally supported Monday by higher boxed beef and the potential for steady to higher cash this week. Traders may remain cautious over the potential of demand through the end of the year. Hogs closed under pressure in most contracts but remained in an uptrend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $225.74 +$1.59* Hogs: Higher Futures: Higher Lean Equiv: $99.49 +$2.47** *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: The February live cattle contract showed the most volatility Monday with a price swing of $2.00. Futures closed higher, but not with conviction. Traders will be cautious unless they continue to see strong boxed beef prices and further aggressiveness by packers. Packers are positioning themselves for the holidays and may have enough cattle purchased ahead, limiting the need to bid up the cash market. Cattle are available and are at record weights. However, beef continues to be absorbed in the market as demand remains good. Boxed beef prices were higher Monday with choice up $2.10 and select up $2.61. Feeder cattle futures traded in line with live cattle. A few contracts closed lower, but most closed moderately higher with the potential to regain the recent weakness. Demand for feeder cattle remains strong.