DTN Early Word Livestock Comments 01/05 06:14

DTN Early Word Livestock Comments 01/05 06:14 Feedlots Will Hold for Higher Cash Feeder cattle found support from the significant pressure on corn price. Live cattle posted gains as no cash activity took place, increasing the odds of higher cash this week. Hogs were under further pressure as cash is not performing well. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $208.28 -$1.53* Hogs: Mixed Futures: Mixed Lean Equiv: $93.97 -$0.17** *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: The cattle complex showed positive trade with futures closing higher. Feeder cattle finally found buying interest as traders reacted to the significant pressure on corn. Feeder cattle traded higher at an auction Wednesday in Oklahoma. Traders were more confident to buy live cattle futures yesterday as no cash business was done increasing the likelihood of higher cash this week. February cattle futures will remain close to cash and an increase will result in futures moving higher. Boxed beef prices were mixed with choice taking a beating Wednesday with a decline of $4.05 while select found further strength gaining $1.77. The drop of choice cuts yesterday will not impact the desire of packers to maintain a strong slaughter pace as they want to meet demand and will pay up to obtain the cattle they need.