DTN Early Word Livestock Comments 12/27 06:01

DTN Early Word Livestock Comments 12/27 06:01 Cash Cattle Expected to Trade Higher Traders came to the market aggressively on Thursday with the idea cash cattle will trade higher. Strong boxed beef and higher futures may leave feedlots holding firm with their offers. Hogs struggled much of the day but managed to hold well closing mixed as demand seems to be holding. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.81 +$2.67* Hogs: Lower Futures: Lower Lean Equiv: $101.58 +1.07** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Demand remains strong with boxed beef prices increasing significantly after Christmas. Choice jumped $4.41 with select up $2.20. Some cattle traded in Kansas and Texas at $190 likely setting the stage for steady to higher cash on Friday. The packers will be reluctant but will need to pay more to obtain the cattle they need even for the holiday-shortened week. Feeder cattle led the charge with contracts nearing recent highs. Current demand and current supplies should support the market for the foreseeable future. Fund traders may add more long positions on the idea demand will remain strong. High beef prices do not seem to be having much impact on demand. Prices will need to increase further before demand may slow. There has been no indication when the border may open for cattle from Mexico to move into the U.S. again.