DTN Early Word Livestock Comments 01/29 06:21

DTN Early Word Livestock Comments 01/29 06:21 Up, Up and Away! The cattle market is a sight to behold with live cattle futures showing strong gains for the fifth consecutive day on Tuesday. Boxed beef is supporting the strong gains. Hog futures have had a similar movement, but without the magnitude of cattle. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $243.89 +$1.46* Hogs: Higher Futures: Higher Lean Equiv: $98.51 -$0.30** *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 no ceiling in the cattle market. New contract highs and strong gains keep traders bullish. The market is overbought, but traders do not seem to care. Managed money traders have a record-long position in feeders and may have the same in live cattle by this time, but traders do not care. The strength of boxed beef and the strong potential for higher cash cattle this week are driving the market higher. One would think oxygen is getting thinner at these levels, but until demand slows and cattle supplies loosen, who knows where prices will go? Boxed beef was higher on Tuesday with choice up $2.37 and select up $1.41. Slaughter is running lighter, but cattle weights are higher. The bi-annual Cattle Inventory report will be released on Friday and is expected to show bullish numbers.