DTN Early Word Livestock Comments 01/24 06:24

DTN Early Word Livestock Comments 01/24 06:24 Aggressive Buying May Continue Wednesday Both cattle and hog futures were higher Tuesday with feeder cattle and hogs posting triple-digit gains in numerous contracts. Demand is supporting cattle while hogs gained on optimism. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $221.62 +$1.78* Hogs: Lower Futures: Mixed Lean Equiv: $94.67 -$2.14** *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: Feeder cattle futures provided support to live cattle futures Tuesday. There were reports of strong cash prices for calves out in the country and buyers were willing to pick them up. Traders seem to be more confident beef prices will continue to trend higher and packers will need to be aggressive. Stronger futures may increase the desire for feedlots to hold for higher prices. Boxed beef was strong with choice up $2.99 and select up $1.80. The recent strength of boxed beef has been consistent, which has moved choice back above $300 where it has not been for about two months. Cattle futures turned and closed at new highs again, keeping the trend higher. This may bring more aggressive buying into the market again Wednesday.