DTN Early Word Livestock Comments 01/16 06:22

DTN Early Word Livestock Comments 01/16 06:22 Higher Cash Cattle Trade Provides Support Cattle futures found support on Wednesday with mostly triple-digit gains into the close. Limited cash trade took place at $1.00 higher. Hogs found further strength with June and July closing above $104 on better demand. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $243.72 +$0.43* Hogs: Lower Futures: Mixed Lean Equiv: $96.41 +$0.62** *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: You can't push a good market down. The resilience of cattle futures has been impressive. The strong demand for beef would not indicate otherwise. Boxed beef was mixed with choice up $1.16 and select down $0.67, but early cash trade was light but $1.00 higher in the South. Increased cash activity should unfold today with Northern dressed cattle likely showing the same increase or more. It certainly looks like both cash and futures will push above the $200 level. Cash was anticipated to move to that level about 2 years ago but never quite got there. Consumer demand has been surprising as it has not backed off as beef prices rise. Feeder cattle futures held close to live cattle both keeping pace and slowly increasing the price spread.