DTN Early Word Livestock Comments 01/24 06:14

DTN Early Word Livestock Comments 01/24 06:14 Cattle on Feed Report After the Close Friday Cattle futures continued to push higher Thursday with new contract highs across the board. It seems as if the upward momentum will never subside. Feedlots continue to hold for higher cash. Hog futures closed mixed with little support despite strong underlying cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $242.15 -$0.60* Hogs: Lower Futures: Mixed Lean Equiv: $97.45 +$1.60** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. 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: Feedlots continue to hold out for higher cash and seem prepared to hold cattle until next week if they do not get what they want. Earlier this week, cash trade took place at steady money with last week. This indicated it would set the tone for the week. However, that does not seem to be the case. The feedlots have drawn a line in the sand, and they intend to make the packers cross that line and pay higher prices. In the meantime, futures continue to make new contract highs. Trades may pull back a bit Friday as they position themselves ahead of the Cattle on Feed report this afternoon. The average estimate for on-feed as of Jan. 1 is 99.8% of a year ago. Placements in December at 101.8% and marketed in December at 101.3%. Placements are expected to be the wild card with the range of estimates from 98.8% to 107.1%. Lower boxed beef prices may provide some pressure along with some profit-taking. Choice cuts declined $1.06 with select down $0.78.