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DTN Early Word Livestock Comments 01/25 06:03

25 Jan 2023
DTN Early Word Livestock Comments 01/25 06:03 Cattle Search for Direction Cattle futures were able to hold well into the close despite the surge in corn prices. There is some optimism for higher cash this week which seems to provide some support. Hogs were under substantial pressure in nearby months for much of the day but trimmed those losses into the close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $200.24 -$1.38* Hogs: Higher Futures: Mixed Lean Equiv: $87.87 -$0.86** *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: Cattle futures are searching for direction and that direction seems to be a continuation of the overall trend higher. Futures have a way to move back to new highs, but there certainly seems to be support under the market. The fact that both feeder and live cattle held well despite the surge of corn speaks volumes of the overall attitude. Cash has not yet traded this week and is not expected to trade today as asking prices in the South have been revealed while bids are not yet posted. The concern for the week will be continued weakness of boxed beef with choice down $1.80 and select down $2.10. Although futures held even with higher corn prices, those higher prices may actually be negative to cash this week as feedlots may not want to hang onto cattle any longer than necessary.