DTN Early Word Livestock Comments 01/05 06:21

DTN Early Word Livestock Comments 01/05 06:21 Hog Futures May See Initial Follow-Through Buying Cash cattle business remained light Thursday as feedlots want to hold for higher prices seen on limited trade earlier in the week. Hog futures had a strong Thursday in nearby months with limited strength in later months. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $202.80 -$1.11* Hogs: Lower Futures: Mixed Lean Equiv: $91.03 +$1.72** *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 trade remained light so far this week with business pushed back to Friday. Packers seem to provide the idea they will not need many cattle due to the shorter week, but the numbers they had purchased ahead do not indicate that is the case. They need to purchase to stay ahead of slaughter with cattle movement possibly being hindered somewhat by the upcoming storm system that will spread across a large portion of the country in the coming days. Cash is expected to trade in line with the limited trade which took place earlier in the week. The bearish aspect of the market is the further weakness of boxed beef Thursday. Choice cuts have been hit hard this week with another loss of $2.13 on Thursday. Select cuts declined $0.03.