DTN Early Word Livestock Comments 02/07 06:04

DTN Early Word Livestock Comments 02/07 06:04 Hog Futures Search for Support Cattle futures closed Monday on another positive note. Live cattle were carried higher on the expectations for higher cash prices again this week. Feeder cattle pushed higher, nearing chart resistance. Hogs came under severe pressure and struggling cutouts are not helping. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $198.94 +$1.40* Hogs: Higher Futures: Lower Lean Equiv: $89.39 +$2.53** *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 are being pushed higher due to strong expectations of higher cash again this week. With light cash trading activity last week, trade should take place earlier this week as packers most likely will not wait until the end of the week to do business. They need cattle to maintain slaughter pace. The April contract made a new contract high, keeping the bullishness alive and well. Boxed beef prices moved higher with choice gaining $1.83 and select up $2.11. Stronger boxed beef may cause packers to become more willing buyers. New showlists have not been distributed, providing no indication of cattle available to the market. Feeder cattle continued their uptrend pushing up near price resistance from Jan. 4. Futures should break though the overhead chart resistance, which would trigger further buying interest.