DTN Early Word Livestock Comments 02/14 06:19

DTN Early Word Livestock Comments 02/14 06:19 Livestock Futures Search For Further Support The livestock complex came alive Monday with both cattle and hogs posting strong gains. Tuesday is the last day to trade February hogs. Mixed trading is expected in cattle. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $200.85 +$0.55* Hogs: Higher Futures: Mixed Lean Equiv: $89.00 +$0.69** *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: Both February and April live cattle contracts made new highs with February gapping higher on the open. It is a bit unusual for the front-month contract to leave a gap with two weeks left to trade as price will generally hold close to cash and wait for cash to develop before moving. This clearly shows some optimism for this week. The large volume of cattle purchased last week allowed packers to obtain 25% of those purchases for deferred delivery. This puts them in a better position this week, allowing them maybe to be less aggressive. Boxed beef was higher with choice up $0.29 and select up $1.92. Boxed beef has been showing strength the past few days, indicating demand remains strong.