DTN Early Word Livestock Comments 02/07 06:25

DTN Early Word Livestock Comments 02/07 06:25 Traders Anticipate Higher Cash Wednesday Traders used the decline in cattle futures on Monday as a buying opportunity to establish long positions Tuesday. This keeps the uptrend intact. Hogs could not find solid buying interest as liquidation continued. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $217.18 +$0.49* Hogs: Higher Futures: Higher Lean Equiv: $92.34 -$1.37** *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 weakness of cattle futures was quickly reversed Tuesday and traders wanted to buy into the market in anticipation of higher prices to come. Feedlots in Kansas floated asking prices of $181 to $182. Packers may need to be aggressive this week as the slaughter pace is strong and they do not have many cattle purchased ahead. It will be interesting to see whether they are as aggressive as last week. Traders seem to think so, due to futures having higher cash already factored in. Boxed beef was higher Tuesday with choice up $0.59 and select up $0.83. Both choice and select cutout prices are running above last year and the three-year average.