DTN Early Word Livestock Comments 02/20 06:14

DTN Early Word Livestock Comments 02/20 06:14 Hog Futures May Show Further Liquidation Thursday Cattle futures held their own and did not uncover aggressive buying interest Wednesday. Feeder cattle showed minor losses in most contracts with traders looking ahead to cash and the Cattle on Feed report. Hog futures took a hit as pork values posted another day of substantial weakness. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $231.23 -$0.82* Hogs: Lower Futures: Lower Lean Equiv: $101.24 -$3.95** *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: Traders may be cautious the rest of the week as cash is expected to trade lower and the Cattle on Feed report will be released after the close on Friday. Traders may be trying to defend their long positions or taking some profits on short positions to prepare for cash info and the report. The average estimate for the Cattle on Feed report is for on-feed numbers at 99.3% of a year ago. Placements are expected at 103.0%. Marketings are estimated at 102.2%. As usual, there is a wide range for placements ranging from 98.6% to 106.1%. Boxed beef prices were less than stellar on Wednesday with choice down $1.88 and select up $0.05. Packers continue to reduce slaughter and remain less aggressive with purchases. This may have feedlots moving more cattle at lower prices rather than holding for yet again lower prices. Feeder cattle futures failed to follow through on Tuesday's strength, leaving the potential for further weakness.