DTN Early Word Livestock Comments 01/26 06:03

DTN Early Word Livestock Comments 01/26 06:03 Export Sales to Set Direction Most livestock futures contracts were higher with pressure only on nearby live cattle and hogs. Traders are waiting for cash trade but with a bias to the upside. Hogs struggle to find support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $199.49 -$0.75* Hogs: Higher Futures: Mixed Lean Equiv: $86.92 -$0.95** *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: Cash has not yet traded this week which is not surprising. Feedlots have put out offers only in the South with Northern offers anticipated to be higher. Packers have not yet tipped their hand with bids. With weakening boxed beef prices, packers will not want to purchase at higher prices than last week. Boxed beef showed choice down $1.36 and select down $0.59. Cattle futures have been regaining some of the recent losses supported by lower cattle numbers and the projection for tightening supply. Of course, the potential for cattle prices will be up to demand. The December Cold Storage report showed total beef in storage at 544.0 billion pounds and 7% above a year ago. Inventory increased 4% from November as slaughter remained strong. Weekly exports sales will provide early market direction. Today is the final day to trade January feeder cattle futures and options.