DTN Early Word Livestock Comments 01/02 06:18

DTN Early Word Livestock Comments 01/02 06:18 Cash Cattle Expected to Trade Higher Cattle futures continue to grind higher. March and later feeder cattle contracts made new highs as demand remains good and packers need cattle, likely resulting in higher cash. Hogs closed moderately lower on Tuesday and thankfully bounced over $1.00 from the lows. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $233.78 -$0.62* Hogs: Lower Futures: Mixed Lean Equiv: $96.14 -$4.02** *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: Cash cattle are expected to trade early Thursday as packers purchase cattle for slaughter. There is a strong possibility they are short-bought and will need to be aggressive. Feedlots are asking for more in anticipation the packers will need to step up. Traders were not shy about holding and adding to their long positions through the end of the year. Boxed beef prices slipped Tuesday with choice down $1.15 and select down $0.24 but that may not impact trade. Packers are trying to reduce slaughter to improve margins and back up cattle in the market, but that strategy has not changed the market dynamic.