DTN Early Word Livestock Comments 02/09 06:14

DTN Early Word Livestock Comments 02/09 06:14 Traders Cautious Over Cash Potential Cattle moved through Wednesday uneventfully as traders waited to see if there would be any development of cash activity. The WASDE report was also assessed as to longer-term impact on feed prices and projections of beef prices. Hogs found further support after initially opening lower. Further gains may be seen Thursday. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $198.86 +$0.91* Hogs: Steady Futures: Higher Lean Equiv: $87.06 +$0.73** *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: Nearby cattle contracts were able to close slightly higher as higher cash is expected this week. Cattle have not traded yet with both feedlots and packers holding out again. It is possible some trade may take place Thursday as packers need to obtain cattle and may not be able to afford holding back another week. The WASDE report provided estimates of beef production and prices with those being somewhat neutral. The increase in beef production of 50 million pounds for the year was a bit of a surprise as the projection is for tighter supplies; but the average price was raised by $0.50 to $159. Weekly export sales Thursday may provide more price movement depending on the level of sales. Boxed beef prices were mixed with choice up $0.48 and select down $4.17. Feeder cattle were unable to find any solid footing, even though there continues to be strong demand for cattle and calves in the country.