DTN Early Word Livestock Comments 12/19 06:07

DTN Early Word Livestock Comments 12/19 06:07 Hog Futures May Show Follow Through Buying With some cattle trading $1.00 higher on Friday while the rest traded steady, traders supported futures in anticipation of the same this week. Strong boxed beef prices provided support. Hogs virtually exploded with traders buying without reservation pushing futures back above previous support and new highs in later contracts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $193.94 +$5.69* Hogs: Higher Futures: Mixed Lean Equiv: $92.29 +$1.95** *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: Live cattle continue to reject any period of weakness with nearby December poised to make a new high before the contract finishes trading at the end of the month. Steady to higher cash being paid by packers moving through the holiday period is a testimony to the resolve of feedlots and the need to slaughter cattle to meet demand. Boxed beef made incredible gains with choice jumping $8.53 and select up $6.94. Feeder cattle futures showed much less strength but managed to close higher in all but the April contract. Traders will be looking ahead to the end of the week and the Cattle on Feed report. The Commitment of Traders showed funds increasing their long futures positions by 6,659 contacts to a net long of 66,914 futures contracts.