DTN Early Word Livestock Comments 02/03 06:38

DTN Early Word Livestock Comments 02/03 06:38 Bullish Cattle Inventory Report To Provide Further Support Cattle futures were able to hold into the close Friday. The cash market was up strong during the week, which provided support into the weekend. Hogs struggled, moving through the close of the week. There is some question over the level of demand as we move forward. There is some uncertainty over the impact of the President Trump's tariffs. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $240.15 $2.42 Hogs: Lower Futures: Higher Live Equiv: $98.58 -$0.38 GENERAL COMMENTS: The cattle complex was able to close mostly in positive territory Friday after the previous two days of selling pressure. The market had adjusted to the higher cash cattle trade. Cash in the South traded $6.00 to $7.00 higher with dressed cattle in the North up $2.00, which provided some good support under the market going into the weekend. However, prices had declined from where they were earlier in the week prior to cash cattle trading. The market had to correct to get in line with cash. Boxed beef prices were higher with choice up $.20 and select up $1.17. Slaughter levels were lower than they were the previous week and a year ago. Packers are trying to limit slaughter to try to back up some cattle in the country. The feedlots are in the driver's seat and continue to hold cattle, causing packers to bid higher to get enough cattle for slaughter. The cattle inventory report was bullish as it showed lower cow numbers and lower heifer numbers than a year ago. That should keep cattle supplies somewhat tight for the next one or two years unless we see something else that has major impact on the market. We may not see cattle prices decline to any great extent other than price retracements, but the downside may be limited to some extent. Feeder cattle should remain supportive as there is good demand for feeder cattle and calves in the country. Early expectations for cash this week are for steady to higher. Feedlots will hold for higher cash again and hold cattle over if they do not receive the prices they want. The Commitments of Traders report showed fund traders buying 6,885 futures contracts in live cattle, bringing their net-long position to 156,909 -- a new record long. Funds sold 496 feeder cattle futures, reducing their net long to 29,375.