DTN Early Word Livestock Comments 01/13 06:29

DTN Early Word Livestock Comments 01/13 06:29 Cash Could Go Either Way Cattle could not lift off Thursday, unable to find anything to support futures. Cash cattle trade was nonexistent as both feedlots and packers dug in. Hogs showed further losses in nearby months as spread trading was again active and cash was lower. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $205.19 -$2.03* Hogs: Lower Futures: Mixed Lean Equiv: $87.19 -$1.35** *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 had weekly export sales to ponder first for the day, showing 13,300 metric tons (m) sold during the week. That number was not a market mover. Attention then turned to the WASDE and Quarterly Grain Stocks reports. The report turned out to be bullish, sending grain prices higher. This was not what feedlots wanted to see, but it did not cause them to sell cattle for the bids put out by packers. Packers were hoping higher grain prices would push feedlots to take their bids. This left a standoff which will be resolved Friday as business will need to be done. Lower boxed beef prices are a concern as that could spur packers to slow chain speed to maintain profit margins if the trend continues. Choice cuts were down $3.24 with select down $1.09. USDA painted a positive price outlook, raising their estimated average steer price to $158.50, up $2.50 from the December estimate.