DTN Early Word Livestock Comments 03/17 06:21

DTN Early Word Livestock Comments 03/17 06:21 Hog Weakness Seems Excessive Cattle found some support due to the selling of futures subsiding. Live cattle futures now carry a discount to cash, which stopped the selling tide Thursday. Hogs fell completely apart, suffering heavy losses on what seemed to be technical selling magnified by stops being triggered. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $210.74 -$0.35* Hogs: Lower Futures: Higher Lean Equiv: $91.73 -$1.89** *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: Live cattle were able to find some support due to futures now holding a discount to cash. Futures are not expected to rebound much Friday as traders look ahead to the Cattle on Feed report this afternoon. Estimates are for cattle on feed March 1 at 95.6%, placements during February at 93.9%, and marketings at 95.8%. A bullish report has been anticipated, yet the market has endured selling pressure recently. Futures will move relative to how the numbers are compared to what the estimates are. The trade knows cattle numbers are tighter and will remain that way for some time, but demand will be the driver of price. Boxed beef has been struggling with choice down $0.32 and select down $0.87 Thursday. Export sales were an improvement over the previous week with net sales of 17,700 metric tons (mt), up from last week, but not as good as hoped. Cash has traded $1.00 lower in both the North and South this week with little change expected Friday as packers finish out purchasing their needs. Feeder cattle at auctions were selling at lower prices this week in response to lower cattle futures. Futures bounced even though corn was higher.