DTN Early Word Livestock Comments 02/14 06:14

DTN Early Word Livestock Comments 02/14 06:14 Traders Wary Over Further Weakness There was quite a bit of movement Friday in the cattle complex, but the result was a mixed close for live cattle and lower for feeder cattle. With no further surprises in the cash market, traders did not have much to go on to push futures higher. Hogs were under a little more pressure with numerous contracts posting triple-digit losses. Traders were not ready to buy into the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $206.29 -$0.37* Hogs: Steady Futures: Higher Lean Equiv: $117.43 +8.67** *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 were no surprises in cash cattle Friday to get the market excited. Cash was established earlier in the week, carrying through at generally $2.00 higher in the North and steady in the South. Continued weakness of boxed beef does provide concern over the willingness of packers to pay higher or even steady money this week. Boxed beef showed choice down $0.30 and select down $1.12. However, slaughter pace has increased nicely with the kill last week higher than the previous week and higher than a year ago. Higher feed prices always are a concern for those who raise livestock. There has been a concern over fertilizer prices and the impact that may have on grain production. Now another issue is present with the announcement from Bayer of a force majeure event that may significantly hinder Bayer's ability to supply its customers with glyphosate or glyphosate-containing products this crop year. A mechanical failure at a manufacturing plant providing a key raw material may cause production to drop for about three months. This could have a significant impact on yields and possible grain prices.