DTN Early Word Livestock Comments 12/20 06:07
Traders Look Ahead to the Cattle on Feed Report

Most of the livestock complex closed in the red on Thursday. Cattle likely
saw pressure as traders positioned themselves ahead of the Cattle on Feed
report. Hogs were lower but the losses were limited with May and June contracts
posting slight gains supported by stronger cash.

Robin Schmahl
DTN Contributing Analyst

Cattle: Steady Futures: Mixed Live Equiv: $229.91 +$2.59*

Hogs: Lower Futures: Lower Lean Equiv: $102.01 -$0.20**

*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:

It has not been a good week for cattle with futures declining each day to
close at the lowest level since December 9th. The February contract fell $5.47
over the past four days. This may have established a top at which it will be
difficult to regain. However, cash cattle traded steady in the South and $2.00
higher in the North. This may provide support for today's trade. Although the
Cattle on Feed report will be released this afternoon, The selling may have
been overdone and futures may bounce. The average estimates for the Cattle on
Feed report are for on feed as of December 1 at 99.9% of a year ago with the
range of estimates for 99.4% to 100.3%. Placements in November at 95.9% with a
range of 92.6% to 98.9% and marketed in November at 98.2% with a range of 97.7%
to 98.7%. Boxed beef prices were mixed with choice up $5.05 and select down
$1.44.