DTN Early Word Livestock Comments 01/04 06:12

DTN Early Word Livestock Comments 01/04 06:12 Livestock Futures May Stabilize Livestock were under pressure in all contracts except for December 2023 and later hog futures. Pressure stemmed from the weakness in nearly all commodities spilling over with the thoughts of potential demand weakness. Feeder cattle could not find strength, even though corn took a beating. Hogs succumbed to pressure from weak cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $209.81 +$3.23* Hogs: Higher Futures: Lower Lean Equiv: $94.14 -$1.90** *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: Even though cash cattle are expected to trade higher due to strong boxed beef and higher slaughter pace, the market could not shake the spillover pressure from the outside commodity markets. Traders will likely regroup Thursday as pressure subsides and traders absorb the news. Strong boxed beef prices should keep packers aggressive as they want to meet that demand by keeping a strong slaughter pace. A cash price of $3.00 to $5.00 higher last week might be matched again this week. Cash is not expected to trade Wednesday. Boxed beef was higher Tuesday with choice up $4.97 and select up $3.70. This indicates demand remained strong through the end of the year. The impact of the winter storm over Christmas has not completely been assessed, but there has been death loss as well as reduced cattle performance. Feeder cattle did not respond to the significant loss of corn futures, which is a cause for concern.