DTN Early Word Livestock Comments 01/27 05:37

DTN Early Word Livestock Comments 01/27 05:37 Cattle Strength May Be Short-Lived Wednesday was the day for cattle futures to shine -- not hog futures. Much of the trade in both markets seemed to be technically driven. Cattle needed to bounce and hogs needed to take a breather. Support was not received from cash in either market. Robin Schmahl DTN Contributing Analyst Cattle: Lower. Futures: Mixed. Live Equiv: $216.19 -$2.35* Hogs: Steady. Futures: Mixed. Lean Equiv: $101.74 +$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: Live cattle uncovered sufficient buying interest to close the chart gap in some futures contracts but not in all. Feeder cattle showed similar technical buying with nearby contracts unable to close the gaps while later contracts did. Much of what took place Wednesday was technical in nature and not fundamental. After cash business taking place at steady money on Tuesday, some trading took place $1.00 lower Wednesday. We cannot expect anything much different to develop the rest of the week. Not only did cash not support the rally, but boxed beef declined. Choice was down $2.92 with select down $3.60. This does make one feel warm and fuzzy for the rest of the week. Futures may follow through Thursday but likely only to close the chart gaps that remain. Pressure could then resume unless there is support from weekly exports.