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DTN Early Word Livestock Comments 03/19 06:11


DTN Early Word Livestock Comments 03/19 06:11
Follow-Through Strength Likely Tuesday

Cattle futures had a good beginning to the week with traders not being shy
about their anticipation of price potential. Hogs were higher in all months
except April with traders anticipating better prices but remaining cautious due
to lower cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

Cattle: Steady Futures: Higher Live Equiv: $230.71 +$0.84*

Hogs: Higher Futures: Mixed Lean Equiv: $99.08 -$0.31**

*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:

Rather than beginning the week with caution, cattle traders are optimistic
about beef prices as the calendar moves into the first day of spring. With the
continued strength of boxed beef, traders anticipate higher cash again this
week. The exuberance may temper as the end of the week draws near and the
Cattle on Feed report comes into focus. The report may not have much impact on
the overall market as cattle numbers remain tight, but it will influence trade
for a brief time. The estimates are for on-feed numbers on March 1 at 100.8% of
last year. Placements are at 106.3% with again a wide range of estimates from
102.7% to 108.8%. Marketed in February is estimated at 103.9% compared to a
year ago. Boxed beef provided support on Monday with choice up $1.43 and select
up $0.65. Feeder cattle showed the greatest gain of over $3.00 in the May
contract.