DTN Early Word Livestock Comments 01/15 06:16

DTN Early Word Livestock Comments 01/15 06:16 Traders Are Optimistic Over Pork Demand Live cattle futures showed minor losses Tuesday as traders chose not to be aggressive buyers until cash provides direction. The January contract in feeder cattle led the way as the price spread widened. Hogs found solid buying interest with new contract highs in June and later contracts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $243.29 +$0.06* Hogs: Higher Futures: Higher Lean Equiv: $95.79 +$0.01** *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: Traders are waiting for cash to provide direction. Higher boxed beef prices indicate strong demand, lending to the potential for packers to pay more for cattle. The anticipation has been for stronger cash, but at these lofty levels traders remain cautious. The decline in live cattle was offset by the strength of feeder cattle. The January contract gained $2.25, pushing it to a record high. There is no letup in demand for feeder cattle in the country as buyers need to buy or go without and pay higher prices next week. The price spread of $76.70 between the February live cattle and January feeder cattle contracts is unprecedented. Boxed beef prices were higher with choice up $0.51 and select up $3.34 moving the price spread to $15.78.