DTN Early Word Livestock Comments 12/22 06:10

DTN Early Word Livestock Comments 12/22 06:10 Optimism Provides Strong Support Cattle were higher across the board Wednesday with live cattle traders anticipating higher cash due to another day without cash activity. Feeder cattle were able to post gains despite the strength of corn. Hogs again outperformed the fundamentals with incredible strength in nearby contracts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $195.17 +0.43* Hogs: Steady Futures: Mixed Lean Equiv: $90.50 -$1.01* *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 traders could not contain their excitement pushing futures to new contract highs. The winter storm that is moving across the country provided some support as feedlots may delay marketing plans and focus on animal welfare instead. Packers are short-bought and their attempts at steady to lower bids were rejected, leaving no cash activity Wednesday. The upcoming Cattle on Feed report is anticipated to be friendly and has also provided optimism. Cattle on feed on Dec. 1 are estimated to be 97.1% of a year ago. Placements are estimated at 95.8% and marketings at 101.0%. All live cattle futures made new contract highs Wednesday, increasing trader confidence for higher prices. Boxed beef was mixed with choice down $0.19 with select up $2.39. Feeder cattle did not succumb to higher corn prices but increased in optimism along with live cattle.