DTN Early Word Opening Livestock 02/14 06:07

DTN Early Word Opening Livestock 02/14 06:07 Further Short-Covering Ahead of Weekend Cash cattle trading $3.00 lower this week does not make one feel warm and fuzzy. More will be required to turn the trend higher than just a bounce due to an oversold market and the three-day weekend ahead. Lean hogs were able to post slight gains likely on spillover support from cattle and a three-day weekend. By Robin Schmahl DTN Dairy Analyst Cattle: Steady Futures: Higher Live Equiv: $138.43 -0.33* Hogs: Higher Futures: Higher Lean Equiv: $ 68.01 -0.86** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: February live cattle futures finally put in a positive close after losses the previous four days. April and later contracts extended the gains from the previous day. There is anticipation that higher prices will again unfold Friday, but traders may not be too excited about covering short positions or establishing long positions just yet. Cash cattle trading $3.00 lower this week does not make one feel warm and fuzzy. More will be required to turn the trend higher than just a bounce due to an oversold market and the three-day weekend ahead. Feeder cattle led the charge Thursday, posting triple-digit gains with futures seemingly building a base. Futures have a long way to go to regain the losses realized in the last half of January due to the coronavirus outbreak. Lean hogs were able to post slight gains likely on spillover support from cattle and a three-day weekend. Some support might stem from China cutting tariff rates in half Friday on $75 billion of U.S. products. The hog industry has long awaited a surge in pork demand from China, but there is no guarantee this tariff cut will generate anything substantial. Traders may short-cover Saturday just in case something develops over the weekend.