DTN Early Word Livestock Comments 01/06 06:21

DTN Early Word Livestock Comments 01/06 06:21 Cattle Futures Struggle to Find Footing Cattle futures just could not get a break Wednesday with continued liquidation. Traders' fears of no better than steady cash were confirmed. Hogs continued their march higher following at third day of higher cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $200.65 +$0.42* Hogs: Higher. Futures: Higher. Lean Equiv: $92.778 +0.45** *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 was more behind the weakness of cattle this week than higher corn prices. Cash could not follow through with the strength seen over the past few weeks. Cash cattle trading activity in the North was steady to $1.00 lower with the South posting steady trade. Traders feared the potential for no better than steady cash this week, and their fear came to fruition Wednesday. Feedlots were not willing to hold cattle another week and thought steady or $1.00 lower was a better alternative than feeding higher priced corn another week to market ready cattle. Slower cattle slaughter pace is not a good sign for the market with worker absenteeism impacting the ability of plants to process the cattle. Boxed beef prices closed higher with choice up $0.11 and select up $0.38. Good export sales will be important to provide some support to the second half of the week.