DTN Early Word Livestock Comments 03/28 06:14

DTN Early Word Livestock Comments 03/28 06:14 Follow-Through Strength Expected The livestock complex came to life Monday, posting strong gains across the board. It was as if the up-to-date Commitment of Traders report triggered short-covering in an oversold market. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $208.40 +$0.45* Hogs: Higher Futures: Mixed Lean Equiv: $88.49 +$0.17** *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 moved higher right from the start of trading with the April contract quickly closing the chart gap that had remained above the market. The strong opening left a chart gap in the June and August contracts below the market. The finally updated Commitment of Traders report and the market being oversold might have been the catalyst to trigger buying. Boxed beef was higher with choice up $0.48 and select up $0.97. The market is poised for further follow-through strength as traders look ahead to the potential for possibly stronger cash. Last week, packers were able to purchase 25% of cattle ahead for deferred delivery even though business seemed to be light. March and April feeder cattle futures have a chart gap under the market left after the strong opening Monday. The March contract closed the upper gap, but now have a lower gap with three days remaining of the contract.