DTN Early Word Livestock Comments 12/27 06:24

DTN Early Word Livestock Comments 12/27 06:24 Reports Will Influence Trading Activity Cattle moved higher into the Cattle on Feed report and the extended weekend. Buyers seemed confident to report they would support current prices. Cash traded higher as well on Friday. Hogs were mixed with selling pressure in nearby months with traders positioning themselves for the Hogs & Pigs report. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $200.54 +$4.03* Hogs: Higher Futures: Lower Lean Equiv: $100.11 +$3.30* *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 traded $1.00 higher in both the North and South to close out the week with business needing to be accomplished after a week of holding out. Boxed beef prices virtually exploded higher with choice up $6.74 and select up $3.66, finishing an impressive week of boxed beef gains. It is uncertain how traders will react Tuesday on the numbers of the Cattle on Feed report. The report showed on feed 3% and placements 2% lower than a year ago, which would be supportive in comparison. However, the wild card will be placements as the trade estimated a 4.2% decline in placements. With the market moving up into the report, there is a strong possibility selling pressure could be put on the market Tuesday as traders under anticipated the amount of cattle placed. Marketings were right on expectations and the highest marketings for November since 1996.