DTN Early Word Livestock Comments 02/05 06:19

DTN Early Word Livestock Comments 02/05 06:19 Futures Volatility Expected to Remain High Cattle futures extended losses Tuesday. Even though tariffs with Mexico and Canada have been put on hold, traders remain nervous. Hog futures moved sharply higher Tuesday, regaining the losses of Monday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $242.17 -$1.04* Hogs: Higher Futures: Higher Lean Equiv: $100.41 +$0.95** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Feeder cattle led the charge lower Tuesday. Cash cattle have been traded this week, but there is a strong chance cash may be no better than steady with last week. Feedlots may be more aggressive sellers as they may feel the market is running out of steam to the upside. It is too early to tell with the recent pressure stemming from the uncertainty of the tariff situation and cattle imports from Mexico resuming. Fund traders held record-long futures positions, which may also have added to the liquidation. Packers may be less apt to bid up for cattle this week if they sense feedlots might be anxious to sell. Boxed beef prices were lower with choice down $1.26 and select down $2.43.