DTN Early Word Livestock Comments 01/08 06:31

DTN Early Word Livestock Comments 01/08 06:31 Uncertainty Will Dominate Trading Feeder cattle led the charge lower Friday as traders liquidated into the weekend. Cash did not move higher as much as was expected, even though cash activity was pushed back to late in the day. Hogs put in another strong day, moving futures deeper into the range that has developed since early December. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $203.57 +$0.77* Hogs: Lower Futures: Mixed Lean Equiv: $ 90.88 -$0.15** *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: Traders were a bit disappointed that cash did not trade more aggressively Friday and was not as high as expected. Most live trade took place at $173 and dressed $274 to $275. Traders seemed to be thinking higher prices would unfold. The weakness of choice cutouts during the week was a concern, even though choice increased $1.26 and select gained $0.71 Friday. What is more interesting is that cash and boxed beef are nearly at the same level. This is unusual and could make for an interesting week. Weekly export sales were a bit better than the previous week at 9,500 metric tons (mt). Strong sales were not expected due to the holiday week. The movement of cattle may be hindered this week with another storm system that will be moving across a good portion of cattle country. It will also impact cattle performance and may result in reduced weights in the near term. The Commitment of Traders report showed funds increasing their long positions by 980 contracts to a net-long position of 17,852 futures contracts. Feeder cattle showed funds reducing their short positions by 275 contracts, bringing their net-short positions to 2,817 futures contracts.