DTN Early Word Livestock Comments 02/21 06:21

DTN Early Word Livestock Comments 02/21 06:21 Traders to Position Ahead of the Report Friday Live cattle futures eliminated the gains of Wednesday and then some on Thursday. Lower cash trade came to fruition as feared. Feedlots are anxious to move cattle. Hogs continued the liquidation with further weakness of cutouts and the second day of liquidation. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $230.48 -$0.75* Hogs: Lower Futures: Lower Lean Equiv: $99.75 -$1.49** *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: Cash cattle traded lower than anticipated Thursday. Southern live cattle traded $4.00 lower with Northern dressed cattle trading $5.00 lower. It has not paid off to hold out for the past three weeks. Feedlots are willing to sell before prices decline further. The current market is feeding on itself as cattle are sold to avoid further weakness. The Cattle on Feed report will be released after Friday's close with traders expecting higher placements than a year ago. The average estimate for the Cattle on Feed report is for on-feed numbers at 99.3% of a year ago with a range of 98.7% to 100.0%. Placements are expected at 103.0% with a wide range of 98.6% to 106.1%. Marketings are estimated at 102.2%, ranging from 101.6% to 102.5%. Boxed beef prices were lower on Thursday with choice down $1.26 and select down $0.58.