DTN Early Word Livestock Comments 02/21 06:24

DTN Early Word Livestock Comments 02/21 06:24 Feedlots Remain Positive Live cattle closed higher Friday, but did not post substantial gains, even though cash traded higher. Feeder cattle just could not generate any strong buying interest. Hogs drifted with traders waiting to see further direction from cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $206.83 +$2.22* Hogs: Higher Futures: Higher Lean Equiv: $90.32 +$2.12** *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: Feedlots held for the win last week with cash trading higher. Waiting it out resulted in Southern trade $2.00 higher while Northern trade was $2.00 - $3.00 higher. Even when packers are able to purchase an amount of cattle for deferred delivery, they still cannot avoid that fact that market ready cattle are not plentiful and higher prices are what is needed to purchase what is available. The same is going to be true this week as cattle numbers and fundamentals are not going to change anytime soon unless there is some unforeseen event that would be of major consequence. Boxed beef continues to show strength after a rocky start to the year with choice up $1.49 and select up $3.25 on Friday. Markets were not open Monday, but choice cutouts gained $1.85 with select up $2.16. The Cattle on Feed report will be released Friday, keeping some thoughts focused on that.