DTN Early Word Livestock Comments 02/09 06:22

DTN Early Word Livestock Comments 02/09 06:22 Cash Cattle Expected to Trade Higher Friday Cattle futures found their legs Thursday, reversing the losses of the previous day and pushing to new highs. Feedlots are tight-fisted and seem determined not to trade at steady or lower cash. Hogs could not find support, opening lower and posting further weakness as the packers pulled back. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Mixed Live Equiv: $217.35 -$0.45* Hogs: Lower Futures: Higher Lean Equiv: $92.47 +$2.37** *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: Cash cattle have not traded so far this week, which provided support to the market Thursday. Feedlots are holding for higher cash and, with lower carcass weights and less expensive feed prices, they can afford to do it. Feedlots were not waiting for the WASDE report for information that might be bullish as these are estimates from USDA and can change from month-to-month. They are just waiting for the packers to step up because they need cattle. The WASDE report was friendly as USDA estimated quarterly steer prices to range from $1 to $3 higher than their previous estimates. Beef production was increased and imports were raised. This indicates there is an expectation for stronger consumer demand as exports remain unchanged. Boxed beef was mixed with choice up $0.03 and select was down $1.30.