DTN Early Word Livestock Comments 02/15 06:24

DTN Early Word Livestock Comments 02/15 06:24 Lower Cash Cattle May Be a Possibility It appears a greater price correction is taking place in the livestock complex, fueled by the potential for lower cash cattle trade this week. Strong buying interest was uncovered in hog futures with the April contract leading the way. The decline in hog weights and a possible tighter supply provided support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $216.92 +0.66* Hogs: Lower Futures: Mixed Lean Equiv: $92.01 -$1.26** *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: Cattle futures suffered a blow Wednesday as a few cash cattle sales took place in the South at $2 lower. Cash trading activity was light, but the fear is it could set the stage for cash direction this week. The current asking prices by feedlots are higher than that and higher than a week ago, but those offers may not be attainable. Boxed beef prices are putting some pressure on the market with choice down $1.81 and select down $1.72 on Wednesday. Boxed beef's weakness and the potential weakness of cash could result in a greater correction in the futures prices. Feeder cattle futures were under greater pressure, not because of feeder prices in the country, but likely tied more to a price correction of the potential weakness of cash cattle this week.