DTN Early Word Livestock Comments 01/10 06:09

DTN Early Word Livestock Comments 01/10 06:09 Traders Look for Further Direction Optimism returned to the cattle market with traders buying futures more aggressively. Cash held last week, providing confidence to feedlots for more this week. Boxed beef continues to show strength. Hogs pushed higher due to short-covering in an oversold market. Both cash and cutouts did not support the move. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $210.23 +$1.57* Hogs: Lower Futures: Mixed Lean Equiv: $90.21 -$1.65** *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: Traders realized steady cash last week was not cause for continued weakness of futures. Optimism returned for higher cash due to continued strong demand. Boxed beef prices were again higher with choice up $3.15 and select up $0.26. The strong slaughter pace is keeping cattle current, which will keep packers looking throughout the countryside for market-ready cattle. Even though there are continued fears of inflation having an impact on overall demand, consumers continue to prefer beef at present. Cash cattle trade is expected to follow the pattern of the past few weeks with no activity likely until Thursday as feedlots hold for higher cash market-ready cattle not backed up in the country. The demand for feeder cattle has held auction prices higher with the weakness of corn providing support.