DTN Early Word Livestock Comments 02/15 06:10

DTN Early Word Livestock Comments 02/15 06:10 Lower Grain May Support Cattle Cattle and hogs diverged Tuesday and not necessarily from spread trading. Cattle traded slightly lower as there is some belief cash will not trade higher this week. Hog showed follow-through strength on further gains in cutouts and short-covering. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $202.36 +$1.51* Hogs: Higher Futures: Higher Lean Equiv: $89.14 +$0.14** *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: Cattle did not have much to go on other than higher boxed beef prices. That was not sufficient to provide sustained buyer interest, even though February live cattle made a new contract high. Caution has permeated the trade with anticipation cash may not trade higher this week. Boxed beef has been trending higher with choice up $2.11 and select up $2.57 Tuesday, but that may not be enough to have packers bid higher due to them having a fair amount of cattle already purchased ahead. Showlists are light and feedlots may hold again, wanting to squeeze a little more out of packers if they can.