DTN Early Word Livestock Comments 01/24 06:04

DTN Early Word Livestock Comments 01/24 06:04 Hogs May Develop Support Live cattle found support from the neutral Cattle on Feed report on Friday and spillover strength from feeder cattle as they pushed higher in response to lower corn prices. Hogs put in a roller coaster day with a strong opening followed by substantial weakness only to eventually trim the losses. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $201.62 -$0.55* Hogs: Higher Futures: Mixed Lean Equiv: $88.73 +$0.93** *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 closed higher with feeder cattle leading the way. Traders bought feeder cattle due to lower corn futures with some support spilling over into live cattle. With the neutral Cattle of Feed report behind, traders felt the market was a bit overdone to the downside resulting in a price correction. Boxed beef did not provide support with choice down $0.28 with select down $1.94. This does not bode well but the supportive factor is that packers did not purchase a large amount of cattle ahead for this week. That may mean that they need to step up this week to purchase the cattle they need. However, that may not garner much more than steady money unless feedlots hold out even if it means carrying cattle over into next week. I doubt that will happen which may leave cash no better than steady.