DTN Early Word Livestock Comments 01/16 06:26

DTN Early Word Livestock Comments 01/16 06:26 Price Direction May Be Slow to Develop Tuesday Lower cash cattle last week may keep traders cautious to begin the holiday-shortened week. Weather will remain an issue that will leave feedlots focusing on taking care of cattle rather than posting offers. Hogs seem to have greater support under them, but technically chart resistance has limited gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $213.28 +$1.21* Hogs: Higher Futures: Higher Lean Equiv: $93.72 +$0.98** *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 mostly $1 lower last week which may not cause much concern for traders as there will be a strong possibility packers will need to make up for lost slaughter volume once the cold weather breaks. On top of that, there may be some lighter-weight cattle available, requiring more to fulfill the tonnage needed. Weather will continue to remain a factor for much of this week. Consumer demand seems to have increased along with reduced movement of beef to retail due to weather problems. Boxed beef prices increased with choice up $2.16 and select up $0.71 on Monday. Feeder cattle found some support Friday, but weather has impacted sale barns and the desire of buyers to procure cattle. The Commitment of Traders report showed funds selling 3,541 futures contracts to reduce their net-long positions to 14,311. Fund reduced their net-short positions by 353 contracts to a net-short position of 2,464 contracts.