DTN Early Word Livestock Comments 02/26 06:13

DTN Early Word Livestock Comments 02/26 06:13 Hog Futures May Find Support Wednesday The strength of feeder cattle supported live cattle futures Tuesday. The trend may be turning up after a substantial price retracement. Cash may be stabilizing. Hogs could not find support as the weakness of cutouts returned, keeping traders cautious over demand. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $231.58 +$0.33* Hogs: Higher Futures: Mixed Lean Equiv: $101.39 -$2.78** *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: Feeder cattle again led the complex higher with triple-digit gains. Feeder cattle futures have gained much of what has been lost since late January. Live cattle have broken the downtrend which may give traders more confidence to buy into the market. Higher boxed beef prices may provide an incentive for feedlots to hold out for at least steady cash this week. Choice boxed beef was up $0.59 with select up $0.16. Feeder cattle futures continue to outpace live cattle, widening the spread. This should pull live cattle higher to narrow the gap. Feeder cattle and calves are in strong demand in the countryside and will continue to support the market.