DTN Early Word Livestock Comments 01/07 06:09

DTN Early Word Livestock Comments 01/07 06:09 Lower Livestock Processing Speeds Are Concerning It was generally a positive Thursday for the livestock complex. Although there were no huge gains in futures, the fact that they were higher was a victory. Hogs saw another day of higher cash. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $201.67 +$1.02* Hogs: Steady. Futures: Higher. Lean Equiv: $96.42 +$3.64** *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 futures were facing a tough day Thursday with weekly export sales showing a reduction of 3,900 metric tons (mt). Futures did move lower as was expected, but short covering eventually was triggered with some traders trying to bottom pick the market. Even though export sales were dismal, boxed beef prices have been improving all week, not by leaps and bounds, but improving. Choice cuts were up $1.61 and select up $1.03. Cash cattle trading is basically done for the week with prices generally steady. Some Northern dressed sales were $1.00 lower. Beside higher feed prices, the other aspect plaguing the market is reduced slaughter due to the uncertainty of the workforce from day to day. Less workers means less slaughter being done. This impacts the bargaining power of feedlots as cattle begin to back up. Demand is strong but cattle need to be processed.