DTN Early Word Livestock Comments 01/02 06:18

DTN Early Word Livestock Comments 01/02 06:18 Markets to Open With Uncertainty The excitement Friday was the strength of December live cattle as the contract closed out and price adjusted to cash. Demand uncertainty and lighter trading activity affected the rest of the complex. Hog futures followed a similar pattern as traders ended the week and the year. Cash did not perform well. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $210.14 -$0.54* Hogs: Steady Futures: Mixed Lean Equiv: $ 91.29 +$2.17** *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: The mixed trading activity Friday was not a surprise as lighter trading activity at the close of the year dominated the market. The December contract made a large adjustment as it ended trading and was impacted by the strength of cash. Cash cattle in the South traded $1 higher with Northern dressed sales $2 to $3 higher. The positive end to 2023 may provide feedlots more confidence of higher prices this week. Packers will need to purchase cattle to get back on track with regular business again, which may leave them more aggressive this week. Boxed beef was mixed with choice down $1.57 and select up $1.09. This does not provide any solid direction. However, the cash strength last week may provide support to the market. Weekly export sales were a dismal 2,100 metric tons (mt), down 78% from the previous week. The Commitments of Traders report showed funds trimming their long positions by 165 contracts, bringing their net-long futures positions to 16,872 contracts. Feeder cattle showed funds selling 834 contracts, bringing their net-short position to 3,092 contracts.