DTN Early Word Livestock Comments 03/16 06:17

DTN Early Word Livestock Comments 03/16 06:17 Bearish Market Implications Selling pressure increased in the livestock complex Wednesday. The financial markets have had a negative impact on livestock and the potential for demand impact. A few cattle traded yesterday at $1.00 lower, sending further bearishness through the market. Hogs fell apart as cutouts provided no support and technical selling erupted. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $211.09 -$1.27* Hogs: Lower Futures: Mixed Lean Equiv: $93.62 -$1.99** *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: The liquidation of cattle futures seems to be gaining momentum. Live cattle futures moved to the lowest level since late January, clearly showing the market always falls faster than it rises. The uncertainty of the financial markets is putting pressure on livestock. Demand may not be impacted, but the perception of traders is what is driving the market. Boxed beef prices were lower with choice down $1.64 and select down $1.93. If that was not enough to pressure the market, a few cattle traded $1.00 lower than last week in both the North and South. The fact that trade took place earlier in the week and prices were lower suggests feedlots are more anxious to sell and this may set the stage for the rest of the week. The Cattle on Feed report will be released Friday. Estimates are for cattle on feed March 1 at 95.6%, placements during February at 93.9%, and marketings at 95.8%.