DTN Early Word Livestock Comments 01/29 06:24

DTN Early Word Livestock Comments 01/29 06:24 Traders May Begin With Uncertainty Monday Last week was a very strong week for the livestock complex. Both cattle and hog futures pushed through price resistance levels, which triggered short-covering. Fundamentals supported the gains with further strength anticipated this week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $221.26 +$1.18* Hogs: Higher Futures: Higher Lean Equiv: $95.77 +0.22** *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: Higher cash cattle last week supported the gains in futures contracts. Trade in the South was mostly $2.00 higher on a weighted average of $175 with Northern dressed cattle at $277, up $3.00 for the week. Packers still seem to be light on cattle supply, which will increase the resolve of feedlots to hold for higher cash. Traders may continue to buy into the market as supply and demand fundamentals are positive. Slaughter weights for the week ended Jan. 13 showed all live cattle at 1,396 pounds, down 15 pounds. The steer carcass weights were down 10 pounds at 927 pounds. Further decreases should develop as the impact of the harsh weather is seen. Boxed beef was higher Friday with choice up $1.85 and select up $1.28. The Commitment of Traders report showed funds adding 3,962 long futures positions to live cattle, bringing their net-long positions to 17,372 contracts. Feeder cattle futures showed traders buying 3,298 futures contracts, bringing their net-long positions to 1,561 contracts.