DTN Early Word Livestock Comments 02/10 06:11

DTN Early Word Livestock Comments 02/10 06:11 Strong Cash Cattle Prices Expected The cattle complex was rather complacent Thursday with live cattle futures slightly lower while feeder cattle were slightly higher. Traders were waiting for cash to trade. Hog futures spent some time in positive territory but came up short in the end as traders are not yet convinced the market is in position to trend higher. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $200.08 +$1.22* Hogs: Lower Futures: Mixed Lean Equiv: $88.16 +$1.10** *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 spent some time in positive territory but was unable to move to new highs or to hold gains. Traders seemed to want to see the level of higher cash before adding more premium to futures. That may be added Friday as there was some light trade in the North $4.00 higher. However, many passed on those bids yesterday, pushing most of the business to Friday. Higher cash is certain for the week, but the level of gain is yet to be determined. This will likely set the tone for higher futures Friday, along with positive boxed beef prices as choice gained $2.09 and select gained $0.85. Price support will also come from the decline of carcass weights on the comprehensive weekly report. Carcass weights declined 12 pounds from the previous week, putting weight 20 pounds below a year ago. This set the stage for higher futures Friday.