DTN Early Word Livestock Comments 12/31 06:17

DTN Early Word Livestock Comments 12/31 06:17 Mixed Trading Activity Expected to Close Out Year Cattle futures did not show much on Monday with a mixed close for live cattle and minor gains for feeder cattle. It is doubtful cash cattle will trade Tuesday. Hog futures took it on the chin Monday with substantial losses and breaking below the trading range. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $234.40 +$2.24* Hogs: Higher Futures: Mixed Lean Equiv: $100.16 -$0.75** *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: Cattle futures remain supported as consumer demand remains strong. Boxed beef prices gained by leaps and bounds Monday with choice up $2.99 and select up $3.63. It is as if consumers want to celebrate the upcoming new year with beef. The continued strength of boxed beef may indicate packers need to be aggressive again this week. Cash cattle are not expected to trade Tuesday, but are expected to be higher. The December live cattle contract will cease trading Tuesday with February taking over as the lead month with a $4.00 discount. It is a full day of trading Tuesday with the markets closed Wednesday. The Commitments of Traders report showed fund traders reducing their live cattle long position by 4,117 contracts to a net-long position of 132,096. They sold 372 feeder cattle contracts, bringing their net -ong position to 18,744 contracts.