DTN Early Word Livestock Comments 01/04 06:17

DTN Early Word Livestock Comments 01/04 06:17 Cash Cattle Trade Expected to Take Place Price action in cattle futures was limited compared to some of the volatility we have seen recently. Traders are waiting for cash trade to provide some further market direction. Hogs followed a similar pattern with a mixed close. Cash and cutouts continue to struggle. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $203.91 -$3.25* Hogs: Lower Futures: Mixed Lean Equiv: $89.31 -$2.32** *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: Traders did not have much direction Wednesday. There was a tug-o-war between the significant decline of cutouts and the prospect of higher cash trade. That will again be prevalent Thursday as choice cutouts took another beating, falling $6.31, with select down just $0.01. There were some cattle traded in Iowa and Nebraska at $275 to $276 dressed, which is $2 to $3 higher than last week. However, sales were limited and may not be a strong indication of overall trade for the week. Business should take place Thursday as packers need to get cattle on the books.