DTN Early Word Livestock Comments 01/27 06:17

DTN Early Word Livestock Comments 01/27 06:17 Mixed Futures Trade Expected to Begin Week The cattle markets were explosive last week, posting strong gains and new all-time highs. Feedlots held out and were rewarded with higher cash. The Cattle on Feed report should provide further support. Hog futures pushed higher despite most cash business having been done for the week. Traders will need to see higher cash prices to extend the gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $240.46 -$1.69* Hogs: Steady Futures: Mixed Lean Equiv: $97.34 -$0.11** *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 are a sight to behold with new all-time highs made last week. Packers held back most of the week in hopes that feedlots would need to sell cattle at even money as some early initial cash trade indicated. But the feedlots had none of it and were determined to hold cattle another week if they did not receive higher prices. Southern cattle traded up to $5.00 higher with Northern dressed cattle as much as $6.00 to $8.00 higher Friday. Cattle futures continue to defy gravity as cattle supplies remain tight and demand remains strong. The Cattle on Feed report was supportive to the market with on-feed numbers on Jan. 1 at 99% compared to the estimate of 99.8%. Placements were 97% compared to the estimate of 101.8% and marketings were 101% compared to the estimate of 101.3%. The report may be factored, in leaving futures mixed Monday as traders wait for further direction. The Commitments of Traders report showed the funds adding just 31 contracts to their net-long position in live cattle bringing their total to 149,756 contracts. The funds added 1,215 long futures contracts, bringing their net-long futures position to 27,983 contracts and the third week of a record-long position.