DTN Early Word Livestock Comments 01/05 06:08

DTN Early Word Livestock Comments 01/05 06:08 Further Pressure Possible in Cattle Complex Cattle were under pressure with feeder cattle leading the charge lower. Traders became concerned that feedlots may be more interested in moving cattle due to escalating feed prices. Hog futures were generally higher with February lower due to spread trading. Packers remained aggressive Tuesday and paid more for hogs. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $200.23 +$0.46* Hogs: Steady. Futures: Higher. Lean Equiv: $92.33 -$0.55** *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: Feeder cattle came under pressure earlier in the day, even before corn price began rising substantially. The weakness was compounded as stops were triggered resulting in Katie-bar-the-door selling. This put pressure on live cattle dispelling some of the hope of steady futures until cash activity develops. With the sharp rise of corn futures, there is concern feedlots may be willing to part with cattle for steady money rather than hold out another week. The jury is still out on that, as widespread bids or offers were not posted Tuesday. Boxed beef prices were higher with choice up $0.79 and select up $0.33. The Commitment of Traders report showed funds are net buyers of 850 live cattle contracts increasing their net long positions to 69,602 futures contracts.