DTN Early Word Livestock Comments 02/25 06:18

DTN Early Word Livestock Comments 02/25 06:18 Cattle Futures Should See Follow-Through Strength Tuesday Cattle futures were supported Monday by the Cattle on Feed report with feeder cattle leading the way with gains of over $4.00. Hogs opened higher but buyer interest did not continue. Packers were not aggressive as they assessed weekend demand. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $231.25 +$1.76* Hogs: Higher Futures: Higher Lean Equiv: $104.17 +$1.36** *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: Traders decided the market was overdone to the downside with the Cattle on Feed report providing a catalyst for buying Monday. Feeder cattle futures showed greater interest as nearby contracts gained over $4.00. The placements on the report were below the average trade estimate, providing buying support. Feeder cattle have been in a better technical position than live cattle, leading the complex higher. Boxed beef prices were higher Monday with choice up $2.96 and select up $1.41. This may be short-lived but should provide further support Tuesday. It is uncertain what cash will do this week but further weakness is possible as feedlots may need to move more cattle rather than have them gain weight. Packers continue to hold the line on slaughter, which has been to their advantage recently.