DTN Early Word Livestock Comments 02/29 06:16

DTN Early Word Livestock Comments 02/29 06:16 Cattle Futures May Show Further Weakness Cattle futures were under pressure Wednesday with feeder contracts showing the greatest effect. The market may be making a price correction, which would change market sentiment. Hogs were able to eke out a higher close again after first making new highs in some contracts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $223.32 +1.15* Hogs: Higher Futures: Mixed Lean Equiv: $98.15 -$1.53** *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 had a tough Wednesday with futures generally opening lower and remaining that way most of the day. Some cash cattle traded in the South at even money with last week. Hopefully, cash will not trade lower, or futures could see further pressure. Thursday is the last trading day for February live cattle and it does not look as if it will close the chart gap, which it was so close to accomplishing the past few days. Boxed beef is providing some support as choice was up $1.29 with select up $2.54 on Wednesday. This indicates demand is holding for now. Feeder cattle futures had a larger price correction with contracts through May more than $3.00 lower. Feeder cattle and calves continue to command higher prices at auctions as supplies are tight.