DTN Early Word Livestock Comments 01/18 06:05

DTN Early Word Livestock Comments 01/18 06:05 Cattle Futures May See Further Pressure Livestock futures were mixed Tuesday with cattle lower and hogs higher. Cattle still feel the effects of lower cash last week and the possibility of lower cash this week. Hogs moved higher as short covering took place but failed to hold the highs due to cutout weakness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $204.26 -$0.80* Hogs: Higher Futures: Mixed Lean Equiv: $85.25 -$3.15** *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: The cattle complex was unable to find support closing lower in all contracts. Traders are still feeling the effects of lower cash last week and the potential for lower cash again this week. Boxed beef could not find support Tuesday with choice down $0.77 and select down $2.02. Boxed beef weakness may indicate the market may be rolling over as demand is impacted. Packers seemed to have regained the upper hand again, at least for now, having purchased cattle last week to maintain slaughter pace with some contracted for this week. Feeder cattle remain in demand with prices at auctions still retaining a premium. However, futures have been under substantial pressure over the past four days mostly in response to higher corn prices since the WASDE report.