DTN Early Word Livestock Comments 02/20 06:20

DTN Early Word Livestock Comments 02/20 06:20 Hog Futures May Be Influenced By Uncertainty The cattle complex closed higher Friday and looks to be making another attempt at closing the chart gaps in live cattle. Hogs were able to hold as demand looked good with cash and cutouts higher. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $219.11 +3.60* Hogs: Higher Futures: Higher Lean Equiv: $99.89 +$3.21** *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 traded lower for the week but that did not deter traders from supporting futures. Cash cattle traded $1 to $2 lower last week, but the tighter cattle numbers trumped the lower trade. After the big jump in cash the previous week, the decline last week still showed the market advancing. Traders know a large number of cattle are not going to be found somewhere that have not been accounted for. Boxed beef was higher Monday with choice up $0.89 and select up $0.74. There was no cash trade on Monday as usual. The Commitments of Traders report Friday showed funds increasing their long positions by 7,066 contracts to a net-long position of 46,638 futures contracts. Funds increased their long positions by 1,598 contracts to a net-long position of 6,554 futures contracts.