DTN Early Word Livestock Comments 12/09 06:28

DTN Early Word Livestock Comments 12/09 06:28 Futures May Find Direction From Export Sales It was not a good day for the livestock complex. Everything closed in the red. There was no interest shown to trade cash cattle Wednesday leaving traders wondering just what will transpire. Cash hogs plummeted, but cutouts shot through the roof. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $198.00 -2.75* Hogs: Steady Futures: Higher Lean Equiv: $ 97.20 +9.35** *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: Traders were a bit disappointed cash cattle did not trade Wednesday. Feedlots set their sights on higher cash posting offers and waiting for packers to step up to the plate. However, boxed beef prices have been falling with choice down $3.92 and select down $2.59 Wednesday. This may make packers less willing to pay up as much as they have the past few weeks. However, they do need cattle and do not have a large amount forward contracted for later deliveries. Cash should trade Thursday as packers will want to obtain cattle. Expectations for an increase of cash has been trimmed to $1.00 higher rather than the earlier $2.00 to $3.00 higher. Weekly exports sales will need to be as good as last week or better.