DTN Early Word Livestock Comments 02/06 06:05

DTN Early Word Livestock Comments 02/06 06:05 Early Cash Cattle Trade Points to Lower Prices The liquidation of the past week ran its course with traders willing to step back into the cattle market. The selling was a bit overdone relative to the cash market, but cash looks weaker this week. Hog futures were higher Wednesday with a second day of solid gains. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $238.86 -$3.31* Hogs: Lower Futures: Mixed Lean Equiv: $99.48 -$0.93** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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 pushed higher after a week of aggressive liquidation. This was good as it corrected an overbought market. The fundamentals did not change as cattle supplies are tight and will remain that way for a time. Concern over the impact of tariffs on demand left traders uneasy and triggered the selling. Much of that has now been digested. However, the recent pressure on futures and the uncertainty in the market may result in feedlots being willing to move cattle more aggressively rather than holding out for higher cash that may not be attainable. Some light cash trade took place $1.00 to $3.00 lower. The recent decline in futures and the developing tariff situation may be a warning shot over the bow. Boxed beef prices were lower on Wednesday with choice down $5.39 and select down $3.08.