DTN Early Word Livestock Comments 12/16 06:24

DTN Early Word Livestock Comments 12/16 06:24 Packers May Be Aggressive in Hog Market Live cattle futures were on fire last week as the December contract moved to levels last seen in October 2023. Traders were a little shy about being aggressive in later contracts. Hog futures found strong buying interest as traders stepped back in to support the market for the long haul. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $227,.78 +$1.28* Hogs: Higher Futures: Higher Lean Equiv: $100.47 +$2.30** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: It was a strong end to an exceptional week for live cattle. Nearby contracts closed higher Friday, but traders did not support deferred contracts. Traders may be hesitant to support later contracts as high prices could cure high prices and they certainly are high historically. Cash cattle trade Friday was quiet, leaving the idea that packers did not purchase cattle ahead and are just keeping up with demand. This may leave feedlots holding for higher prices in the anticipation that packers will need cattle and will bid higher to get them. Strong cash last week and increasing boxed beef continue to provide support. Boxed beef Friday showed choice up $1.15 and select up $3.38. Traders were hesitant in feeder cattle Friday, deciding to liquidate positions ahead of the weekend at these lofty price levels. The Commitments of Traders report showed fund traders adding 4,884 long futures contracts in live cattle, increasing their net-long position to 138,762 contracts. There were 801 futures contracts added in feeder cattle, bringing their net-long positions to 18,322.