DTN Early Word Livestock Comments 01/27 06:10

DTN Early Word Livestock Comments 01/27 06:10 Cash Will Set Futures Direction Even though cash cattle trade is generally waiting until today, futures just could not hold until cash was actually seen. A few trades steady with last week did not sit well with traders. Hog traders got excited yesterday after initially making a new low. An oversold correction may be unfolding. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $199.63 -$0.61* Hogs: Higher Futures: Mixed Lean Equiv: $88.27 +$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: Cattle slid lower yesterday as there had been some disappointment with cash trade waiting until Thursday and then trading steady with last week. Trading activity was light in the North which was not enough to indicate what will transpire today, but it may have set the stage. Southern cattle have not yet traded with bids and offers about $3.00 apart yesterday. There is no doubt packers will need cattle to maintain a strong slaughter pace, but feedlots continue to see high feed prices and will need to move cattle that are ready for the market. Export sales were good at 25,100 MT but were unable to provide support. Boxed beef was mixed with choice up $0.47 and select down $0.32.