DTN Early Word Livestock Comments 02/01 06:25

DTN Early Word Livestock Comments 02/01 06:25 Follow-Through Expected in Cattle Market The cattle complex did not wait until a new month before rallying. Traders saw a brisk slaughter pace shaping up, providing some hope for the coming weeks. The cattle inventory report was expected to be friendly as well. Hogs showed mixed trading activity with some spread trading and the weighty impact of significantly lower cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Higher. Live Equiv: $217.08 -$0.04* Hogs: Steady. Futures: Mixed. Lean Equiv: $101.69 -$1.88** *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 are making a run for the highs with the strength Monday. Much of the strength seemed to be the result of the indication that slaughter pace might be near normal again soon and may cause packers to bid more aggressively to procure needed cattle. Cash did not trade Monday with no bids or offers floated. Showlists were mixed. The weakness of corn may not have been much of a factor as corn futures are still high and made new contract highs before falling back. The anticipation of a friendly cattle inventory report was likely more of a driving factor. Bullish traders were correct in their assessment as the inventory report showed all cattle and calves on Jan. 1 at 98% of a year ago. Boxed beef was slightly weaker with choice down $0.02 and select down $0.14. The Commitment of Traders report showed funds as net sellers of 12,856 contracts bringing their net long positions to 49,321.