DTN Early Word Livestock Comments 01/11 06:18

DTN Early Word Livestock Comments 01/11 06:18 Traders May Wait For Cash Direction Except for a few contracts, the livestock complex closed higher across the board Wednesday. Feeder cattle showed the greatest gain with both live cattle and hogs posting a similar increase. Both boxed beef and pork cutouts posted nice gains. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $207.97 +$2.22* Hogs: Lower Futures: Mixed Lean Equiv: $93.351 +$2.14** *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 to go on to move the trade one way or the other Wednesday, with live cattle futures trading in a range of about $1.00. It was interesting to see that February struggled despite the anticipation of a higher cash price. Traders seem to want to see it before believing it. Some light trade took place in Iowa with dressed at $175, but it may not be representative of what the rest of the week will bring. Boxed beef showed strong gains with choice up $2.91 and select up $4.11. It seems the doldrums of demand might be over to some extent with consumers adding more beef to meals again. Higher boxed beef the past few days may increase the potential for packers to pay more for cattle to meet that demand. Weekly export sales will be released and should show a higher number now that the holidays are over. Feeder cattle futures made a nice gain Wednesday but remain rangebound.