DTN Early Word Livestock Comments 01/09 06:19

DTN Early Word Livestock Comments 01/09 06:19 Traders Uncertain of Price Direction The livestock complex did not close last week on a very good note. Cash cattle trade was a bit of a disappointment, leaving traders wondering if this might be the beginning of the end to the higher trend. Hogs were unable to find any reason to rally, even though cash was higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $208.66 +$0.89* Hogs: Lower Futures: Mixed Lean Equiv: $91.86 -$0.60** *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: There was hope for a bounce in cattle futures to end the week as there were expectations of higher cash. Even the last day did not see packers turning more aggressive as Friday's cash trade was not much different than it had been. In general, steady trade in the South and steady to $0.50 higher cash in the North increased the caution of traders. The earlier anticipation of $160 cash cattle quickly faded. Even though boxed beef was higher on Friday, it was not sufficient to turn traders more bullish as they were content to wait for this week's fundamentals to develop. Choice cuts were $1.36 higher with select up $2.39. Likely most of the pressure stemmed from a poor export sales report which resulted in net reductions of 6,900 metric tons (mt). The demand for feeder cattle is strong with prices as much as $10.00 higher in some cases. The Commitment Traders reports showed funds increasing their long futures positions by 3,380 contracts to a net long 84,869 futures contracts.