DTN Early Word Livestock Comments 12/11 06:18

DTN Early Word Livestock Comments 12/11 06:18 Early Cash Cattle Trade Sets Stage for Positive Week Cattle futures found support and pushed higher Tuesday after a moderate opening. Light trade developed at steady money with last week providing confidence to traders that the rest of the week will show steady to higher cash. Hog futures moved in the opposite direction, posting double-digit losses even though cash hogs were higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $224.61 -$1.13* Hogs: Steady Futures: Mixed Lean Equiv: $99.00 -$0.49** *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 support Tuesday, pushing the December contract to the highest close since March 21. The February contract closed near technical resistance, which may cap the strength in the near term as we move through the holiday period. However, fundamentals remain positive for demand and the potential for tighter feedlot supplies early next year. The boost in buying stemmed from some light cash cattle trade in Kansas at steady money with last week. It is unusual to see cash trade this early in the week and it gives the impression that Packers might be short-bought and want to purchase ahead to prepare for the Christmas and New Year holiday weeks. Packers continue to hold back on slaughter, but it does not seem to have much impact on the market. Cattle weights are high but are not overwhelming the market and are, in fact, positive and provide sufficient beef for demand with tighter cattle supplies. Boxed beef prices were mixed with choice down $2.41 and select up $0.31. Feeder cattle futures remained in step with live cattle, posting similar gains.