DTN Early Word Livestock Comments 02/12 06:16

DTN Early Word Livestock Comments 02/12 06:16 Support to Continue for Cattle Cattle took a breather Friday, slipping back from the highs with most feeder cattle contracts closing lower. There had been almost no cash cattle traded by the close of the futures market, leaving traders uneasy. Hogs were able to hold positive gains but closed near the lows of the day. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $217.13 -$0.22* Hogs: Lower Futures: Mixed Lean Equiv: $92.08 -$0.39** *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 posted a strong week with new highs made nearly every day. The anticipation was for higher cash cattle, but little or no cash trading took place by the close Friday. That changed in the afternoon as packers finally had to give in and pay from $4 to $6 higher to pry cattle from the feedlots. Futures had this factored in, but a jump in cash of that magnitude is sure to bring traders into the market to buy futures more aggressively. It is doubtful cash will be as strong this week, but feedlots won a victory and will be looking for more. Boxed beef prices were mixed with choice down $0.97 and select up $0.96. Feeder cattle remain in strong demand with higher prices being paid at auctions. This will not change anytime soon. The Commitment of Traders report showed funds purchasing 9,556 futures contracts of live cattle bringing their net-long position to 39,572 contracts. Funds purchased 751 feeder cattle contracts, bringing their net-long position to 4,956 contracts.