DTN Early Word Livestock Comments 01/03 06:18

DTN Early Word Livestock Comments 01/03 06:18 Feedlots Hold For Higher Prices Live cattle futures pushed to new contract highs thursday while feeder cattle extended their pattern of new highs. Higher cash cattle trade fueled trader buying interest. Hog futures struggled for the first two hours but finally found some footing as traders bought the break. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $233.38 -$0.40* Hogs: Lower Futures: Mixed Lean Equiv: $95.16 -$0.98** *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 were expected to trade higher Thursday, but when they did traders became aggressive buyers. The February contract pushed through technical resistance while later contracts made new highs. Feeder cattle followed suit but led the way with greater gains. Southern lived cattle sales were $2.00 to $3.00 higher. There is potential for Northern dressed sales to see even greater gains. Futures are adjusting higher to remain in line with cash. This buying interest is likely to have managed money traders holding a record-long position. Boxed beef closed lower for the second day with choice down $0.74 and select down $0.29. Feeder calves and cattle at auctions continue to bring higher money as demand remains strong.