DTN Early Word Livestock Comments 02/28 06:15

DTN Early Word Livestock Comments 02/28 06:15 Cash Cattle Could Go Either Way Friday The cattle complex found support Thursday with futures higher. Feeder cattle were stronger, dragging live cattle higher. Some light cattle trade indicates cash might be lower. Hog futures fell substantially Thursday, impacted mostly by technical selling. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $229.57 -$1.12* Hogs: Higher Futures: Higher Lean Equiv: $106.70 +$4.30** *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: Live cattle futures regained the losses of Wednesday and then someone Thursday as contracts were pulled up by the strength in feeder cattle. Feeder cattle futures have been leading the complex and are within striking distance of retesting the highs. Cattle futures may have some headwinds Friday and lower cash trade and lower boxed beef prices on Thursday may increase trader caution ahead of the weekend. Limited cash trade took place on Thursday in the North at $2.00 lower than last week. That may set the stage for weakness in the South on Friday as business is done. The weakness of boxed beef does not indicate that beef demand is improving. Choice cuts were down $1.72 and select cuts were down $1.11. Weekly export sales were not as good as hoped with sales down 15% from last week. The inability of boxed beef to increase may limit cash potential.