DTN Early Word Livestock Comments 02/27 06:21

DTN Early Word Livestock Comments 02/27 06:21 Traders Wait for Cash Direction Live cattle futures were able to hold their head above water Monday, but the same could not be said for feeder cattle as they fell back significantly from the highs. Hog futures were mixed with spread trading putting some pressure on the nearby months. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $220.74 +0.51* Hogs: Higher Futures: Lower Lean Equiv: $96.80 -$0.17** *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: Live cattle futures did not share the sentiment of the bearishness of the placement number on the Cattle on Feed report. Early lower futures provided the opportunity for traders to buy into the market for the long term. The winter storm in some of cattle country may increase buying interest in futures as it takes place when there is some calving happening. The January Cold Storage report showed total beef in inventory decreased by 4.9 million pounds from December and was 11% below January 2023. Boxed beef was higher Monday with choice up $1.18 and select up $1.68. Feeder cattle remained under pressure Monday, but that is expected to be short-lived. The demand for feeder cattle and calves remains strong.