DTN Early Word Livestock Comments 01/03 06:14

DTN Early Word Livestock Comments 01/03 06:14 Trade May Be Supportive, But Cautious The cattle complex was not able to see a strong close to end out the year. However, with higher cash and stronger boxed beef last week, the uptrend should continue. Hogs showed mixed trade with nearby contracts closing lower due to limited cash and cutout price movement. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $206.58 +$1.59* Hogs: Mixed Futures: Lower Lean Equiv: $96.04 +$0.11* *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 coasted through the end of 2022 as traders seemed to be content with prices where they are. Feedlots were satisfied with higher cash for the week and packers were satisfied with higher cutouts. Obviously, packers wanted to limit their spending on cattle, but with strong cutouts and tighter supply, they needed to again pay more last week. Boxed beef was higher with choice up $3.12 and select up $0.23, rounding out a strong week. However, poor export sales were reported with only 2,300 metric tons (mt) sold and likely what put the pressure on the market. Feeder cattle had little to go on as it drifted lower along with live cattle even though corn futures did not do much. The Commitment of Traders report showed funds increasing their long positions by 14,362 futures contracts to a net long of 81,489.