DTN Early Word Livestock Comments 02/26 06:24

DTN Early Word Livestock Comments 02/26 06:24 Cattle Futures Expected to Open Lower Monday Livestock futures pushed higher Friday with triple-digit gains in cattle with double-digit gains in hogs. Cattle were propelled by an increase in cash while hogs coasted into the weekend. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $220.74 +0.51* Hogs: Higher Futures: Mixed Lean Equiv: $96.97 -$1.03** *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 received a boost from higher cash trade to close out last week. Southern cattle traded $3 higher with Northern dressed trading $4 higher. Traders had been preparing for the Cattle on Feed report but the jump in cash trumped the cautiousness over the report. Boxed beef was higher with choice up $0.82 and select up $0.50. These prices continue to reflect the tightness of the market and strong consumer demand. The Cattle on Feed report was negative in the placement category as USDA reported placements in January were 93% of a year ago. That was friendly due to placements being 7% lower. However, the number is 4.8% higher than the average trade estimate. On feed numbers as of Feb. 1 were 102% and slightly higher than the trade estimate. Marketings in January were 100% and right in line with the estimates. The reaction will likely push futures lower to begin the week. The Commitments of Traders report showed funds adding 7,565 futures contracts, moving their net-long position to 54,203 contracts. Feeder cattle showed funds adding 844 long futures positions, moving their net-long total to 7,398 contracts.