DTN Early Word Livestock Comments 02/08 06:10

DTN Early Word Livestock Comments 02/08 06:10 Cash Weakness May Impact Hogs Live cattle futures tried to follow through to the upside but slipped lower after first making new highs. Feeder cattle were under pressure from strong grain prices. Hogs were on a roller coaster ride during the day and were able to close higher with closer month posting strong gains. Robin Schmahl DTN Contributing Analyst Cattle: Higher. Futures: Mixed. Live Equiv: $209.97 +$0.42* Hogs: Steady. Futures: Mixed. Lean Equiv: $105.47 +$0.78** *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: There is optimism that cash cattle will trade higher this week but there was no indication of what feedlots are looking for. There were no offers posted and no initial bids from packers. That really was not expected as feedlots will wait to see how aggressive packers will be with their bids. Strong grain prices Monday may have increased the anxiety over holding cattle too long, which could make some more anxious to sell. The World Agricultural Supply and Demand will be released on Wednesday, providing direction for grain prices, which could have an influence on cash cattle sales. Feeder cattle pressure due to higher grain prices was an anchor on live cattle. Boxed beef prices continued to weaken with choice down $0.85 and select down 1.01%. The Commitment of Traders report showed funds as net buyers of 19,951 contracts bringing their net long positions to 69,272 contracts.