DTN Early Word Livestock Comments 12/23 06:09

DTN Early Word Livestock Comments 12/23 06:09 Trade Positioning Ahead of Reports The livestock complex was able to rally at a time when markets can generally be lethargic. However, feeling the Christmas spirit, traders bought into the market. This strength right in front of two major reports was a sight to behold. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $196.11 +$0.38* Hogs: Steady Futures: Mixed Lean Equiv: $91.41 -$0.24** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: Just when it seemed the table was set as far as cash business was concerned, packers stepped up to the plate to purchase cattle at steady money with last week. Packers could not wait any longer to procure needed cattle and had to meet the offers of feedlots. This may provide greater confidence next week as demand is holding. The concern over potential restrictions on public places due to the surge in COVID has been put to rest and President Biden indicated there would be no shutdowns. This provided confidence for the restaurant industry and should keep beef demand strong. Boxed beef prices increased Wednesday with choice up $0.47 and select up $0.91. USDA will release the Cattle on Feed report this afternoon. The estimate is for cattle on feed to be 99.8% of a year ago, placements at 103.4% and marketings at 104.4%. It will be interesting to see where it lands as the on feed and placement estimates have a wide range of guesses.