DTN Early Word Livestock Comments      01/29 06:24
   Higher Cash Cattle Trade Expected

   Cattle futures are finding sufficient support to push higher on the
anticipation of higher cash trade. Feeder cattle led the charge, pushing
through resistance. Hogs ran out of steam, correcting for the overbought
status. However, traders did not liquidate heavily.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $271.29 +$0.46*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $100.83 -$0.64**

   *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:

   Cash cattle have not been traded this week, but there is a growing
anticipation that it will be higher. There were some bids at $236 on Wednesday,
but those were rejected, opening the door for high cash this week. This should
push futures solidly through technical resistance and resume the uptrend. There
is something I have not written about for some time and that is the chart gaps
remaining in both live and feeder cattle futures from Oct. 16, 2025. Feeder
cattle are closer to the gap. These gaps are generally filled, and it is
something to keep in mind. Higher cash trade this week certainly would move
futures closer to this objective. Boxed beef prices were mixed on Wednesday,
with choice up $1.63 and select down $1.62.