DTN Early Word Livestock Comments 02/06 06:29

DTN Early Word Livestock Comments 02/06 06:29 Futures May See Two-Sided Trading Activity The livestock complex closed higher, posting double-digit gains in all contracts except February hogs. Cattle were supported by cash trade while hogs showed technical follow-through. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $197.54 -$0.61* Hogs: Lower Futures: Lower Lean Equiv: $86.86 -$2.45** *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: Feedlots held strong and were not willing to let cattle go at lower prices or even steady money. Late trading developed in the North at $2.00 higher while no trade was reported in the South. Trade was believed to have taken place later after there was no further price reporting for the day. This will be seen Monday after information is gathered. It is anticipated that late Southern trade might have been at least $2.00 higher if not more. With light cash trade taking place last week, it puts packers in a precarious position. They will need cattle this week and may need to pay more to get them, but they will not want to due to the weakness of boxed beef. Boxed beef prices on Friday were lower with choice down $0.36 and select down $2.05. The activity last week will increase the resolve of feedlots to stand strong again this week. An ongoing issue with a third-party service provider impacted some reporting firms' ability to provide the Commitment of Traders report with timely and accurate data. The report will be delayed until corrected.