DTN Early Word Livestock Comments 02/11 06:25

DTN Early Word Livestock Comments 02/11 06:25 Follow-Through Livestock Weakness Expected Livestock futures were pushing higher earlier Thursday but turned abruptly and fell to post significant losses by the close. This pressure surfaced the same time pressure came in grain futures. This may be attributed to a potential interest rate increase of 1% as well as an overbought market. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $206.66 -$1.14* Hogs: Steady. Futures: Mixed. Lean Equiv: $108.76 -$3.36** *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 pushed to new highs before turning quickly lower. Weakness seemed to be tied to the financial markets. The stock market came under pressure as a member of the Fed indicated there could be a push to raise interest rates as much as 1% at the next meeting. That seemed to be the point when pressure moved through many commodity markets. Added to this was some disappointment of cash cattle trade with Southern trade mostly steady with last week. Dressed trade in the North was $2.00 higher but many of those animals were contracted up to two weeks from now. This puts packers more in the driver's seat for the time being. However, no less than steady cash should be considered positive as slaughter pace is strong and cattle are needed. Weekly export sales at 19,500 mt left a little to be desired leaving that aspect of the market neutral. However, continued weakness of boxed beef is of greater concern. Choice cuts declined $0.97 while select fell $3.10.