DTN Early Word Livestock Comments 02/21 06:19

DTN Early Word Livestock Comments 02/21 06:19 Livestock Futures Should Remain Supported Nearby cattle saw pressure Tuesday, closing slightly lower with later contracts holding the line. Traders are waiting for cash and looking ahead to the upcoming Cattle on Feed report. Hogs broke above resistance but could not hold the strong gains with only a moderate close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $219.30 +0.19* Hogs: Higher Futures: Higher Lean Equiv: $98.55 -$1.34** *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 are waiting to see an indication of what cash might do this week. At the same time, they are anticipating the upcoming Cattle on Feed report. The estimates for the report are for cattle on feed on Feb. 1 to be 100.1% with the trade estimates ranging from 99.4% to 101.1%. Placements will be the wild card again with the average estimated at 88.2% with the range of guesses from 81.6% to 94.9%. If the estimated placement number is correct, it would be the lowest placement number for January since 2007. Marketings in January are estimated at 100.0% with a range of 98.6% to 100.3%. Cash cattle have not traded nor have bids or offers been posted. Boxed beef was higher Tuesday with choice up $0.28 and select up $0.42. Feeder cattle futures were much stronger, pushing to new highs as there is optimism from buyers over continued strong cattle prices due to tighter numbers.