DTN Early Word Livestock Comments 12/28 06:07

DTN Early Word Livestock Comments 12/28 06:07 Cattle Traders Look for Direction As expected, the neutral Cattle on Feed report left traders comfortable with current prices and positions. The wait is for cash to trade to provide further direction. Hogs moved higher in response to a neutral to bullish Hogs and Pigs report. The rally was checked by underlying fundamentals. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $198.32 +$1.22* Hogs: Steady Futures: Higher Lean Equiv: $93.17 -$5.14** *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: Cattle futures made the adjustment last week and are now treading water until further direction is seen from cash. The December contract closed slightly higher as it remains close to cash due to the contract closing on Friday. Showlists this week are mixed. There were no bids or offers posted as packers and feedlots will be unwilling to tip their hand too early. Feedlots are expected to look for $1.00 higher cash and will probably hold the line at no less than steady with last week. Packers would like to purchase at lower prices, but demand needs to be met and they will need cattle. Boxed beef prices were higher with choice up $1.54 and select up $2.23. The Commitment of Traders report showed funds reducing their net-long position by 9,364 contracts, bringing their net-long positions to 87,929 futures contracts.