DTN Early Word Livestock Comments 01/08 06:18

DTN Early Word Livestock Comments 01/08 06:18 Futures Should See Further Support Cattle futures pushed higher Tuesday, but were again unable to hold all of the gains made during the day. However, the market continues to improve, setting the stage for higher prices. Hogs held their ground in most contracts, even though the underlying fundamentals provided little support. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $236.98 -$0.11* Hogs: Higher Futures: Mixed Lean Equiv: $94.20 +$0.57** *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: There seems to be nothing to stop the cattle market from moving higher. Futures spent part of Tuesday in negative territory but traders became more aggressive as the day progressed. Feeder cattle led the way with triple-digit gains and new contract highs in March and later contracts. The expectation is for cash to trade higher this week. Feedlots have been able to hold for higher cash and this week will be no exception. Boxed beef prices closed mixed Tuesday with choice down $1.31 and select up $2.10. The weakness of choice cuts will have little impact on the market. Overall, demand remains very strong and packers need to slaughter cattle to meet that demand. There has been no indication of the lifting of the ban on cattle from Mexico and seemingly no concern from traders if it is lifted at some point. Feeder cattle continue to command higher prices in the country as the outlook for strong beef prices remains.