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DTN Early Word Livestock Comments      01/13 06:17
   Livestock Futures May Remain Rangebound

   Cattle futures remained in a sideways trading range with traders supporting
the market, but not providing sufficient strength to push through technical
resistance. Hogs are following a similar pattern, but showed weakness on
Monday; however, the weakness seemed to lack conviction.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv: $263.80 +$1.98*

   Hogs: Higher            Futures: Higher     Lean Equiv: $98.92 +$0.78**

   *Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The 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:

   Packers were able to purchase some cattle for deferred delivery last week,
but not sufficient amounts to put them in the driver's seat this week. Feedlots
were able to receive higher prices for cash cattle last week and are expected
to hold out for higher prices again this week. The bearish implications of the
WASDE report on grain prices will keep feed costs less expensive. Holding
cattle to heavier weights is not going to be detrimental to profitability.
Packers are trying desperately to reduce slaughter to improve boxed beef prices
and yet fulfill demand. Boxed beef was higher on Monday, with choice up $1.48
and select up $5.88. As was reported in the closing comments on Monday, this is
the first time choice has been higher than select since Feb. 22, 2022. The
WASDE report was friendly to the cattle market, but the numbers are only
estimates and can change throughout the year.