DTN Early Word Livestock Comments 01/20 06:11

DTN Early Word Livestock Comments 01/20 06:11 Traders Prepare for Report Livestock futures took the brunt of selling yesterday and not because of spillover from each other. Live cattle declined due to weaker cash. Feeder cattle fell due to further technical selling. Hogs fell due to further cash weakness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $201.91 -$0.88* Hogs: Higher Futures: Mixed Lean Equiv: $87.38 +$1.68** *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: Live cattle selling pressure stemmed from lower cash that surfaced yesterday. Light trade took place at $2.00 to $3.00 lower. This may have set the direction for business today. Traders will be looking ahead to the Cattle of Feed report after the close, but the overriding influence will be cash trade. Weaker cash last week and again this week does not bode well for the market in the near term. Whatever the report says today will garner more reaction on Monday as traders will position themselves today in anticipation of what they feel the report will indicate. On feed is estimated at 96.8%, placements at 91.5%, and marketings at 94.7%. Weekly exports will have an influence as they are being released today delayed due to the holiday on Monday. Boxed beef closed mixed yesterday with choice down $2.57 with select up $1.83. Feeder cattle continued the liquidation phase with six consecutive days of lower lows with March posting the lowest close since October 17.