DTN Early Word Livestock Comments 02/19 06:21

DTN Early Word Livestock Comments 02/19 06:21 Lower Cattle Prices Expected Live cattle futures struggled with nearby contracts slipping lower Tuesday. Feeder cattle found solid buying interest with March rebounding over $3.00. Hog futures closed higher across the board with gains limited to double-digits. Cutouts took a hit. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $232.05 -$0.57* Hogs: Higher Futures: Mixed Lean Equiv: $105.19 -$3.00** *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 were uncertain about the potential of live cattle futures. There is an expectation cash will trade lower this week as sales that were not done last week will be offered this week as cattle will be moved before prices fall further. The feedlots have lost control of the market for the time being and now the market is feeding on itself. Lower futures are influencing cash cattle trade. Packers are reducing their slaughter in an attempt to pay less for cattle and to support the weakening boxed beef. Boxed beef prices were mixed but continued to struggle overall. Choice cuts were up $0.07 with select down $2.52. Traders will also be cautious about the Cattle on Feed report to be released Friday.