DTN Early Word Livestock Comments 02/23 05:56

DTN Early Word Livestock Comments 02/23 05:56 Hogs Have No Ceiling Live cattle futures were able to show mild gains despite the pressure on feeder cattle. Feeder cattle succumbed to the strong gains in the grain markets. Hog futures were swept up in the exuberance of the day as traders continue to trade the trend and packers remained aggressive. Robin Schmahl DTN Contributing Analyst Cattle: Higher. Futures: Higher. Live Equiv: $199.14 -0.80* Hogs: Higher. Futures: Higher. Lean Equiv: $116.11 +$1.33** *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: Traders anticipate further cash strength this week for cattle and are keeping support under the market. It is uncertain what packers will do as they continue to see weaker boxed beef prices whittling away at profits. Yet, they still have profit, and demand is strong, which leaves them wanting to fill that demand. It would be a huge disappointment if cash cannot trade higher this week. However, it will be up to feedlots to hold out in the face of significantly higher feed prices. Boxed beef was mixed with choice down $2.45 while select increased $1.80. This moves the market into an inversion with choice $2.00 lower than select. This is a rarity with the last time boxed beef was inverted was in May 2018. Total beef in inventory in January was 525.4 million pounds, up 19.3 million pounds or 4 percent from December. The Commitment of Traders report showed funds as net buyers of 4,219 live cattle futures bringing their net long total to 86,061 contracts.