DTN Early Word Livestock Comments 02/27 06:15

DTN Early Word Livestock Comments 02/27 06:15 Hog Futures May See Further Gains Thursday Cattle futures took a breather Wednesday after pushing higher since the Cattle on Feed report. Traders may wait to see cash trade before being confident in a price direction. Hogs rebounded nicely once the liquidation subsided. Both higher cash and cutouts provided support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.69 -$0.89* Hogs: Higher Futures: Higher Lean Equiv: $102.40 +$1.01** *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 had adjusted to the numbers on the Cattle on Feed report with further movement influenced by what the cash market will do. The packers have not been interested this week with limited bids posted. That should change Thursday as business should surface. Feedlots seem less interested in selling at lower cash, having moved the cattle they needed to over the past few weeks. They may again hold cattle over if they do not receive at least steady money. Boxed beef prices were lower Wednesday with choice down $1.42 and select down $0.89. Feeder cattle futures showed limited weakness but maintained the substantial price spread to live cattle. Potential tariffs on Mexico and Canada have been delayed to April 2.