DTN Early Word Livestock Comments 02/05 06:19

DTN Early Word Livestock Comments 02/05 06:19 Cattle Price Optimism Should Continue Live cattle and hog futures closed higher Friday while feeder cattle closed lower. Higher cash for the week supported live cattle. Hog futures found minor support in anticipation of stronger demand. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $216.44 -$0.92* Hogs: Lower Futures: Mixed Lean Equiv: $94.51 -$0.34** *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: Live cattle were supported by continued cash trade at Thursday's higher prices. Cash cattle traded in the South from $4 to $5 higher than last week. Dressed cattle in the North traded $3 higher, providing solid market support. Feedlots will have their sights set on higher cash this week and packers may need to be aggressive again due to the current strong slaughter pace. Boxed beef prices closed mixed Friday with choice down $1.86 and select up $0.22. Feeder cattle slipped Friday, likely due to the market being overbought and traders wanting to bank some profits. The Commitment of Traders report showed fund traders increasing their net-long, live-cattle positions by buying 12,644 contracts with funds currently net-long 30,016 contracts. Feeder cattle futures showed funds buying 2,644 contracts, increasing their net-long positions to 4,205 contracts.