DTN Early Word Livestock Comments 02/15 08:11

DTN Early Word Livestock Comments 02/15 08:11 Lower Grain Prices May Support Livestock Prices The cattle complex was able to close higher after spending some time in negative territory. Traders are uncertain over the ability of cash to trade higher this week. Hogs held their ground without a third day of liquidation. Cash increased while cutouts slipped leaving futures mixed. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Higher. Live Equiv: $206.20 -$0.09* Hogs: Steady. Futures: Higher. Lean Equiv: $115.45 +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: Live cattle contracts traded at lower prices for a period of time Monday nearly testing technical support and then rebounded. Feeder cattle were not under quite as much pressure but did follow a similar pattern. Boxed beef prices closed mixed with choice down $0.56 and select up $0.92. This may have tempered some of the selling. However, there was no direction from cash as usual on a Monday with the potential for nothing Tuesday. With the overall weakness of boxed beef and the cash action last week, trade is likely to develop at steady money this week. Feedlots want more but packers may be in a better position due to having some cattle already contracted ahead. The on again, off again situation in the Ukraine will continue to provide volatility in outside markets that may influence cattle futures trading. Corn future reacted to the information released that Russia was going to invade on Wednesday. Now corn futures are under pressure due to a change in the news from that region. Lower corn futures may provide some support to cattle. The Commitment of Traders report showed net buyers of 12,570 contracts changing their net long positions to 81,842 contracts.