DTN Early Word Livestock Comments 01/21 06:18

DTN Early Word Livestock Comments 01/21 06:18 Mixed Trading Activity Expected Tuesday Cattle futures had the higher cash trade for the week factored in with futures closing mixed Friday ahead of the extended weekend. Traders may look ahead to a week of renewed optimism after higher cash last week. Hogs fell as it seemed more that traders decided to take some profits rather than being fundamental-focused. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $243.62 -$0.35* Hogs: Higher Futures: Mixed Lean Equiv: $97.99 -$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: Cash cattle finished another higher week Friday with futures already having it factored in. Futures are holding a discount to cash likely due to the caution in the market over the lofty beef prices. Traders anticipate there will be a point at which prices will not continue to increase. Once that happens, it could trigger substantial selling as the fund traders hold a record-long position in feeder cattle and a near record-long position in live cattle. But for now, the trend is up and the market is supported. The Cattle on Feed report will be released Friday, but it is too early for traders to position themselves ahead of the report. Boxed beef prices were lower Monday with choice down $0.53 and select down $0.39. The Commitments of Traders report showed fund traders adding 5,239 futures positions to bring their net-long position to 149,725 contracts. They added 2,176 futures to feeder cattle, bringing their net-long position to 26,768 contracts and another record-long position.