DTN Early Word Livestock Comments 02/22 06:23

DTN Early Word Livestock Comments 02/22 06:23 Possible BSE in Brazil Again The livestock complex had a strong day as traders seemed rejuvenated after a long weekend. Higher cash cattle and the strong potential for higher cash again this week underpinned the market. Added to that was a suspected mad-cow disease case that is being investigated in Brazil. Hogs were propelled higher by strong cash and cutouts propelled by short-covering. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $212.48 +$2.89* Hogs: Steady Futures: Higher Lean Equiv: $90.23 -$4.71** *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: Probably the knee-jerk reaction news was the announcement from Brazil's Agricultural Ministry that they are investigating a possible case of atypical mad-cow disease. Tests are currently being done for confirmation. There were two cases of atypical BSE confirmed in 2021, which resulted in China banning imports of beef from Brazil for a period. This could be a big deal if it was confirmed and the same takes place. It would mean more demand from the U.S. with an already tighter supply. The other aspect is a strong potential for higher cash this week. Boxed beef was up strongly Tuesday with choice up $4.31 and select up $2.79. There is no reason feedlots will not hold out for higher cash. The general consensus is the upcoming Cattle on Feed report will continue to show a contraction of the cattle herd providing support.