DTN Early Word Livestock Comments 01/19 06:22

DTN Early Word Livestock Comments 01/19 06:22 Cattle on Feed Report to be Released Friday Cattle futures finally exited their slow upward trend, moving significantly higher Thursday as it appears feedlots want a premium for their cattle due to the weather. Feeder cattle led the complex higher. Hogs struggled much of Thursday with a mixed close as the packers are getting back on track with slaughter. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $218.07 -$0.91* Hogs: Steady Futures: Higher Lean Equiv: $95.39 +$0.77** *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: There was no cash trade to speak of to provide an indication of price direction for the week. Packers do not want to pay more for cattle as they may be uncertain how boxed beef will fare once retail orders are caught up. There may have been some indication of that as choice cuts declined $2.16 on Thursday, while select increased $0.74. There is also the Cattle on Feed report due out this afternoon at 2 p.m. CST. Generally, during the week of the report, cash trade usually waits until the end of the week and this time is no exception. The strength of cattle futures was not something packers were hoping to see as that may increase the resolve of feedlots. Another government shutdown was averted as the House passed legislation to extend government funding into March. This eliminates the potential for a disruption of government reporting. Estimates for the Cattle on Feed report are for on-feed numbers on Jan. 1 at 102.2%, placements in December at 95.4%, and marketings at 99.2%. There will be apprehension ahead of the report as many times the numbers are higher than expected in at least one category.