DTN Early Word Livestock Comments 12/23 06:16

DTN Early Word Livestock Comments 12/23 06:16 Hog Traders to Position For the Hogs & Pigs Report The livestock complex was higher on Friday as traders were comfortable they were positioned ahead of the Cattle on Feed report and cash held as it traded earlier in the week. Hogs pushed higher on renewed optimism over demand. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $227.90 -$2.01* Hogs: Lower Futures: Lower Lean Equiv: $103.17 +$1.16** *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: Cash cattle traded steady for Southern live cattle and $2.00 higher for Northern dressed cattle for the week. That provided the confidence for traders to buy futures more aggressively. They also had positioned themselves ahead of the Cattle on Feed report as the liquidation subsided. The Cattle on Feed report was about as neutral as a report could be. On feed on December 1 was 100% compared to the average guess of 99.9%. Placements in November were 96% compared to the estimate of 95.9%. Marketed in November was 99% compared to the estimate of 98.2%. This is the first time in quite a while that the placement number was very close to the estimate. That category has been difficult to guess for quite some time. This is a holiday-shortened week with fewer cattle needed for slaughter leaving the potential for steady trade. Boxed beef prices were mixed with choice down $4.84 and select up $1.80. The Commitment of Traders report showed funds adding 7,451 contracts in live cattle increasing their net long position to 136,213 futures contracts. They added 794 long futures to feeder cattle increasing their net long position to 19,116 contracts.