DTN Early Word Livestock Comments 01/23 06:06

DTN Early Word Livestock Comments 01/23 06:06 An Uneventful Start to the Week Cattle closed higher in all contracts except January feeder cattle. Lower cash had already been factored in and traders were positioning themselves for the Cattle on Feed report. Hogs were higher on strong export sales and some strength in cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $202.17 +$0.26* Hogs: Higher Futures: Mixed Lean Equiv: $87.80 +$0.42** *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: Cash cattle traded lower for the week with cattle in the South traded $1.00 lower while Northern cattle traded $3.00 lower. This was factored in by the end of the week with traders positioning themselves ahead of the Cattle on Feed report. The report was mostly neutral with cattle on feed at 97% compared to trade estimates of 96.8%. Placements were 92% of a year ago with the average trade estimate at 91.5%. Marketings came in at 94% compared to the average estimate of 94.7%. Placements and marketings were a bit negative based on the estimates but it does show a continued contraction of the herd. With the weakness of futures last week, this should already be factored in with traders again looking ahead to cash activity. Weekly exports sales were good at 17,300 providing some support on Friday. Boxed beef showed gains with choice up $0.21 and select up $0.74. The Commitment of Traders report showed funds liquidating 7,182 futures contracts bringing their net long futures positions to 84,621.