DTN Early Word Livestock Comments 12/18 06:19

DTN Early Word Livestock Comments 12/18 06:19 Traders May Be Cautiously Optimistic Most of the livestock complex showed higher futures Friday. Cattle were supported by cash trading higher than earlier in the week. Hog futures were higher as follow-through buying from Thursday continued. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $211.14 +$0.24* Hogs: Steady Futures: Mixed Lean Equiv: $90.95 +$0.23** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: Packers raised bids to accomplish the buying of cattle needed for the week. Cattle in the South traded at $170, which was still $1 lower than last week but $2 above where it traded earlier in the week. Northern dressed cattle traded $2 to $3 lower. However, the fact that cattle traded higher than earlier in the week lends itself to the idea that the low may be in for now and feedlots may have more confidence to hold for better prices this week. It is the last full week of slaughter before the end of the year. Boxed beef closed mixed with choice down $0.68 and select up $2.56. The Cattle on Feed report will be released Friday, but it is too early for traders to focus on that. The Commitment of Traders report showed funds selling 4,656 live cattle futures contracts, bringing their net-long futures positions to 22,233 contracts. Funds increased their long positions in feeder cattle by 156 contracts, trimming their net-short futures positions to 1,663 contracts.