DTN Early Word Livestock Comments 02/13 06:26

DTN Early Word Livestock Comments 02/13 06:26 Livestock Futures May Remain Choppy A few live cattle and feeder cattle contracts made new highs Monday before running out of steam. Traders are uncertain about another gain in cash as packers reduce slaughter. Despite higher cash, hog futures did not have a large trading range Monday and closed mixed. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $217.56 +$0.43* Hogs: Higher Futures: Higher Lean Equiv: $94.65 +$2.57** *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 attempted to push higher with a few live cattle and feeder cattle contracts making new highs Monday but could not hold those levels. The packers had to pay up for cattle last week and they will be loath to do so again this week. It appears they may be reducing slaughter to boost boxed beef prices as well as back-up cattle supply a little. There were no offers posted by feedlots but when they arrive those offers will be higher. Packers may hold the line this week if they can. They did not purchase a large amount of cattle for deferred delivery and will need to be active, but likely not as they were last week. Boxed beef closed higher with choice up $0.04 and select up $1.94. Struggling boxed beef prices are not helping packer profitability. Feeder cattle futures fared better with continuing support from stronger cattle prices at auctions.