DTN Early Word Livestock Comments 01/18 06:20

DTN Early Word Livestock Comments 01/18 06:20 Packers May Increase Bids Thursday Most futures contracts in the livestock markets closed higher as earlier weakness gave way to higher prices at the close Wednesday. Some bids for cattle indicate packers may be more aggressive this week. Hog futures liquidation might have run its course. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $218.98 +$2.37* Hogs: Higher Futures: Higher Lean Equiv: $94.62 +$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: Feedlots may not be anxious to sell cattle this week unless they receive higher prices. A break in the severe weather and less expensive feed prices may leave them less willing to sell. The initial weakness of futures Wednesday turned into more aggressive buying as boxed beef price showed promise of further gains. The afternoon report showed choice cuts up $3.46, moving ever so much closer to $300 with the price at $298.45. Select cuts were up $3.04. Traders may begin to turn their attention to the upcoming Cattle on Feed report Thursday, but the greater focus will still be on cash and boxed beef prices. Estimates for the report are for on-feed numbers on Jan. 1 at 102.2%, placements in December at 95.4%, and marketings at 99.2%. There will be apprehension ahead of the report as many times the numbers are higher than expected in at least one category.