DTN Early Word Livestock Comments 01/26 06:22

DTN Early Word Livestock Comments 01/26 06:22 Cattle Futures May Take a Breather Friday The cattle complex received a boost from stronger cash trade Thursday. This triggered aggressive buying of futures as confidence about higher prices seemed to return. Hog futures chopped around much of Thursday with contracts through August closing with moderate gains. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $220.08 -$0.27* Hogs: Higher Futures: Higher Lean Equiv: $95.55 +0.05** *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 floundered during the first hour of trade Thursday, eventually uncovering buying interest and pushing contracts significantly higher. Both live and feeder cattle futures closed at the highest level since early November. Stronger cash trade developed Thursday with cash in the South up $2 at $175 while Northern dressed trade was $3 higher at $277. Price strength may temper somewhat Friday ahead of the weekend, but cash strength potentially indicates higher cattle prices may unfold. Packer margins are tighter than a year ago, but they need to purchase cattle to fill demand and to purchase ahead. Boxed beef prices were mixed with choice down $0.82 while select increased $0.61.