DTN Early Word Livestock Comments 02/27 06:05

DTN Early Word Livestock Comments 02/27 06:05 Cattle Futures Expected Higher Cattle futures were mixed Friday as traders were focused on positioning ahead of the Cattle on Feed report. Hogs gained early and then slipped back as traders were uncertain over cash and cutouts to close the week. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $213.67 -$0.05* Hogs: Higher Futures: Higher Lean Equiv: $92.59 -$0.66** *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: The cattle complex drifted into the close Friday with traders waiting for the Cattle on Feed report. Even though cash traded higher on limited activity by the close of trading, traders had evened up their positions for the report. Cash traded higher than expected with some trade in Nebraska recorded as much as $5.00 higher with some light trade in Texas about $2.50 higher. Weekly export sales were somewhat dismal at 15,400 metric tons (mt), down 45% from the previous week. Boxed beef did not provide much support with choice down $0.63 and select up $1.21. The focus was on the report. The report was bullish as cattle on feed on Feb. 1 was 96% compared to the average estimate of 96.3%. Placements in January were 96% compared to the average estimate of 97.1%. Marketings were right in line with the estimate at 104%. It will be an interesting day as some of the report was already factored in while at the same time the low exports sales will also be a part of the equation as it was not traded Friday. I think the market will open higher and then could settle back once traders have repositioned themselves again.