DTN Early Word Livestock Comments 02/13 06:06

DTN Early Word Livestock Comments 02/13 06:06 Initial Trade Points to Lower Cash Prices Cattle futures chopped around much of Wednesday with live cattle closing mixed and feeder slightly higher as traders waited for cash direction. Hog futures were solidly higher with new highs across the complex. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Lower Live Equiv: $234.77 -$2.21* Hogs: Higher Futures: Mixed Lean Equiv: $104.28 -$1.09** *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: Traders waited for cash to trade before picking a price direction. The anticipation was for weaker cash but the discount being held by the market left traders uncertain of further downside. Light trade occurred in the South at $3.00 below last week. That likely set the stage for what the rest of the week will bring. Feedlots may be anxious to move cattle rather than risk lower prices if they roll them over another week. Those who held back last week hoping for higher prices will now take a lower price. The movement of futures did not indicate the downtrend has ceased or that support has been found. Boxed beef prices remained under pressure with choice down $3.20 and select down $3.07. Feeder cattle futures closed slightly higher across the board. Prices at auctions remained supported but not quite as high as they had been as buyers are reacting to the futures market.