DTN Early Word Livestock Comments 01/31 06:21

DTN Early Word Livestock Comments 01/31 06:21 Some Profit-Taking Could Surface The livestock complex performed well Tuesday with feeder cattle leading the way, followed by hogs. Traders are optimistic about the market, which is supportive. The cattle inventory report Wednesday will either provide continued support or a price retracement. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $218.63 -$2.02* Hogs: Lower Futures: Lower Lean Equiv: $94.81 -$0.52** *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: There have been no cash sales so far this week and none will likely develop Wednesday. The Biannual Cattle Inventory report will be a large focus. It is anticipated inventory will be below a year ago. If that is what the report shows, it will support the market but may not propel the market higher. Futures are in a solid uptrend with the report causing a possible kneejerk reaction, but likely not a substantial move of the market. Boxed beef prices did not perform well Tuesday, which may be a cause for concern. Choice fell $3.35 with select down $1.17. Weakness in boxed beef may keep packers from becoming too anxious to pay more for cattle.