DTN Early Word Livestock Comments 02/14 06:16

DTN Early Word Livestock Comments 02/14 06:16 Uncertain Cash Keeps Traders Cautious The cattle complex just could not find solid support Tuesday, opening lower and remaining lower. It appears a retracement may take place to correct an overbought market. Hog futures were mixed with traders uncertain about demand due to cutout weakness. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $216.26 -$1.30* Hogs: Higher Futures: Mixed Lean Equiv: $93.27 -$1.38** *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: Traders did not have much to go on in the cattle complex Tuesday. No cash trade took place with none expected in the first place. That left trading activity up to the perception of what cash will do. The general feeling is that cash may be no better than steady this week due to the large increase last week. Boxed beef was lower with choice down $1.81 and select down $1.72. Boxed beef prices may need greater support for packers to be more aggressive this week in the cash market. So far, there have been no bids or offers posted. Some feeder cattle cash activity showed some tempering of the recent strong buying interest. That seems to be tied closely to what the futures were doing Tuesday or the fact that prices are too high for some buyers, leaving less competition.