DTN Early Word Livestock Comments 01/17 06:22

DTN Early Word Livestock Comments 01/17 06:22 Cattle Futures Trend Higher Wednesday Cattle continued to trend higher Tuesday with futures closing at the highest level in about two months. Underlying cash demand is strong, pushing boxed beef higher. Hogs backed away farther from price resistance. The market had moved up too far relative to underlying fundamentals. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $216.61 +$3.33* Hogs: Higher Futures: Mixed Lean Equiv: $94.45 +$0.73** *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 ran higher Tuesday in anticipation of higher cash and increased demand. The demand for boxed beef seems to be on fire with prices continuing to see support. Boxed beef on Tuesday jumped $3.57 for choice with select up $7.42. Choice is knocking on the door of $300 again with the price at $294.99. Weather is having some impact on stronger prices, but consumers seem to have turned their preference back to beef. Cash has not yet traded this week with offers posted in the South at $174 to $175. Packers may be willing to meet these offers due to the need to purchase as slaughter will move back on track and demand has increased. The upside price potential might be limited as the Cattle on Feed report is looming Friday. Estimates for the report are for on-feed numbers on Jan. 1 at 102.2%, placements in December at 95.4, and marketings at 99.2%. Ther will be apprehension ahead of the report as many times the numbers are higher than expected in at least one category.