DTN Early Word Livestock Comments 01/12 06:11

DTN Early Word Livestock Comments 01/12 06:11 Traders Wait for Cash Trade Livestock did not find much support Wednesday. Cash cattle did not trade, and feeder cattle declined, even though there was little pressure from corn. Hogs took another beating with continued cash and cutout weakness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $207.22 -$1.96* Hogs: Lower Futures: Mixed Lean Equiv: $88.54 -$1.05** *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: Feedlots continue to hold out hope for higher cash. Offers have been posted in the South, but nothing solid yet in the North. Thursday should be a day of reckoning with cash trade likely after the World Agricultural Supply and Demand and Quarterly Stocks reports are posted. It may increase the resolve of feedlots or trigger some selling depending on what the report indicates is the potential for feed prices. The potential for ongoing demand will also be assessed as boxed beef prices were lower for the second day. Choice cuts were down $3.80, while select cuts were down $0.23. Feeder cattle are seeing some strong interest at auctions as the moisture outlook improves and a bullish outlook remains. However, that is not translating into a strong market with futures trading in a sideways range over the past month.