DTN Early Word Livestock Comments 01/25 06:17

DTN Early Word Livestock Comments 01/25 06:17 Strong Cash Hogs Provide Price Support Thursday Wednesday was another positive day for the livestock complex. Further weakness was seen in boxed beef, but some cash sales took place at $1 higher. Hogs had a large increase in cash as packers were more aggressive than they had been in quite some time. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $220.35 -$1.27* Hogs: Higher Futures: Higher Lean Equiv: $95.50 +0.83** *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: Live cattle futures continue to trend higher, fueled by the strong possibility of higher cash. Some light trade took place in Kansas and Texas at $174, which is $1 higher than last week. Cash trade should increase Thursday as packers will need to procure the cattle they need even if they need to pay more. However, there is uncertainty developing due to the recent weakness of boxed beef. Choice declined $2.16 with select down $1.14 on Wednesday. This may increase the caution of traders as the second half of the week unfolds. The December Cold Storage report showed frozen beef supply closing the year 11% below the end of 2022. Weekly export sales Thursday may provide some direction for the market.