DTN Early Word Livestock Comments 02/25 06:17

DTN Early Word Livestock Comments 02/25 06:17 Livestock Selling Pressure May Pause Friday Live cattle were lower at the open Thursday as pressure on feeder cattle spilled over. Corn locked limit-up during the night had traders running for the door, resulting in some impressive chart action. Hogs made an initial valiant attempt to recover from Wednesday's losses but succumbed to spillover pressure. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $195.91 -$1.81* Hogs: steady. Futures: Mixed. Lean Equiv: $121.48 +$5.01** *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: February and April live cattle futures left minor chart gaps on the open Thursday as traders exited long position due to the strong gains in grain futures. Feeder cattle left large price gaps in all contracts with futures falling back to price levels last seen in November in the March and April contracts. Grain price did not retain the strength of overnight trade throughout the day, relieving some pressure on futures. Cash cattle trade was a bit disappointing with trade taking place steady with last week. Boxed beef continued to fall with choice down $1.64 and select down $4.41. There seems to be no bottom for boxed beef. Cattle futures could show mixed trade Friday as grain futures fell substantially overnight. Weekly export sales may provide some direction. The Cattle of Feed report will be release after the close. Cattle on feed is expected at 100.9%, placements at 99.2% and marketings at 97.1% compared to a year ago.