DTN Early Word Livestock Comments 02/22 06:17

DTN Early Word Livestock Comments 02/22 06:17 Cattle May Face Some Headwind Cattle futures remained choppy last week in a sideways pattern. Live cattle futures slipped into the extended weekend while feeder cattle were mixed. Hogs were very strong into the weekend with no desire of traders to liquidate long positions due to strong underlying fundamentals. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $199.94 -$1.03* Hogs: Higher. Futures: Mixed. Lean Equiv: $117.44 +$0.18** *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 futures seem to be in a sideways trading pattern. Cash cattle traded higher last week, but that had limited impact on the market and futures already had that factored in. It may be difficult for feedlots to see higher cash this week as continued weakness of boxed beef will weigh on the market. Choice cutouts slipped $0.03 with select cuts down $1.23. Yesterday, choice cuts fell $1.76 with select down $0.79 with the price spread now at $2.25. Packers will assess just how many cattle they need due to some already having some contracted for the near term. However, slaughter pace has been strong, and cattle are needed to fill plant capacity and demand. The issue feedlots face is higher feed prices. Grain futures are significantly higher overnight due to the developments in the Ukraine. Corn futures pushing to new highs may increase the desire of feedlots to move cattle sooner rather the later. Showlists are mixed showing lower numbers in Kansas, Nebraska/Colorado and higher in Texas.