DTN Early Word Livestock Comments 01/07 06:24

DTN Early Word Livestock Comments 01/07 06:24 Traders Should Remain Aggressive Buyers The strength of cash cattle last week supported cattle futures on Monday. Feedlots and traders are optimistic higher cash prices will again unfold this week. Hog futures showed impressive resilience despite the continued weakness of cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $237.09 +$2.32* Hogs: Higher Futures: Mixed Lean Equiv: $93.63 -$1.71** *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 did not spend any time in negative territory Monday, but they also could not hold the highs of the day. Live and feeder cattle futures closed about $1.00 off their highs as some traders became nervous at the lofty levels. Feedlots have set their sights on higher cash this week as strong demand keeps packers aggressive. The weekly weighted averages for both live and dressed cattle set new records last week. The exception was the weekly average for dressed cattle in Kansas. Boxed beef prices were higher with choice up $1.86 and select up a whopping $6.61, likely assuring higher cash this week as demand remains exceptional. The Commitments of Traders report showed funds reducing their long position in live cattle by 898 contracts to a net-long of 131,198 contracts. The funds increased their long futures position in feeder cattle by 1,600 contracts, bringing their net-long position to 20,344.