DTN Early Word Livestock Comments 03/13 06:19

DTN Early Word Livestock Comments 03/13 06:19 Hogs May See Further Short-Covering Traders were not fond of steady cash developing for the week. Feeder cattle fell due to spillover from live cattle with pressure also coming from higher corn. Hogs had a banner day with triple-digit gains though the end of the year and recording solid gains for the week. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $211.33 -$0.77* Hogs: Higher Futures: Higher Lean Equiv: $95.04 +$0.58** *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: Weekly increasing cash cattle trade came to an end with steady trade taking place last week. Traders were apprehensive, concerned the market may have found a top for the time being. Live cattle futures closed lower four consecutive days after posting a new contract high last Monday. The uncertainty of boxed beef prices increased the concern over continued strength. Choice cuts were up $0.31 with select down $4.51 Friday. Boxed beef had been mixed much of the week. Dismal export sales and the seasonal slowdown of demand might keep pressure on prices for a period. Cash is not expected to decline very much, if at all, but the fear of lower cash price could trigger further selling of futures. At steady cash last week, it is likely packers may have purchased more cattle for deferred delivery to try and stay ahead of tightening supplies. Strong demand remains for feeder cattle, but high prices and the bounce in corn on Friday was enough to trigger selling ahead of the weekend.