DTN Early Word Livestock Comments 01/11 06:18

DTN Early Word Livestock Comments 01/11 06:18 Demand Uncertainty Grips Market Cattle did not accomplish much Tuesday with live cattle futures closing slightly higher while feeder cattle were mixed. Without cash activity and weakness of boxed beef, traders remained neutral. Hogs showed weakness due to elusive support for cash and cutouts. The chart gap in February still has not yet been closed. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $209.18 -$1.05* Hogs: Lower Futures: Lower Lean Equiv: $89.59 -$0.62** *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 searching for direction in the cattle complex, but without cash activity and weakness in boxed beef, futures drifted through the end of the day. There is optimism for higher cash trade as feedlots put out some offers in the South yesterday at $1.00 to $2.00 higher. Northern offers have not yet been revealed but are expected to be similar. Cash is not expected to trade Wednesday with most business maybe being done after the World Agricultural Supply and Demand report Thursday and impact of grain prices is assessed. Boxed beef was a bit of a disappointment Tuesday with both categories lower. Choice was down $1.61 with select down $1.27. This one-day decline should not influence cash activity, but it does need to be monitored to see whether consumers have reached a threshold.