DTN Early Word Livestock Comments 01/06 06:17

DTN Early Word Livestock Comments 01/06 06:17 Cattle Futures Should Maintain Uptrend Even though cattle futures closed lower Friday, the losses did not damage the uptrend. Traders decided to take profits despite the bullish fundamentals. Hog futures remained under pressure, making another low and closing lower. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $234.77 +$1.39* Hogs: Higher Futures: Mixed Lean Equiv: $95.34 +$0.18** *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: Live cattle were on fire last week with futures pushing to new contract highs and cash prices jumping significantly. Southern live cattle sold for $2.00 to $5.00 higher with Northern dressed cattle ranging from $6.00 to $8.00 higher. The packers were short-bought and feedlots held out. It is difficult to believe this could be repeated this week, but anything is possible. Eventually, the market will find a level where demand will slow and prices will retrace. Boxed beef continued to increase with choice up $1.76 and select up $2.49. Feeder cattle remain in strong demand with buyers aggressive at auctions with prices generally $10.00 higher in most categories recently. The Commitments of Traders report will be released today, delayed due to the holiday.