DTN Early Word Livestock Comments 03/04 06:19

DTN Early Word Livestock Comments 03/04 06:19 Traders Should Remain Optimistic It certainly was a positive close last week for the livestock complex. Cattle futures were higher, even though cash was steady to lower. Traders wanted to buy the break. Hogs were supported by strong cutouts and continued demand optimism. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $225.03 +0.87* Hogs: Lower Futures: Higher Lean Equiv: $100.27 +$4.24** *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: Buying interest came into the cattle complex Friday with the movement eliminating the losses of the previous three days. The April live cattle contract closed at the highest level since Nov. 2, 2023. It did not matter that cash traded steady to $2 lower. The focus was on the continued strength of boxed beef during the week. Boxed beef on Friday showed choice up $1.08 with select up $1.56. Packers have been reducing slaughter to back up cattle in the country and improve boxed beef prices. Boxed beef has been improving, but cattle are likely not going to back up very much due to already tighter supplies. Feeder cattle futures posted strong gains as traders saw the recent decline as a buying opportunity. Demand for feeder cattle continues to remain strong. The Commitments of Traders report showed funds adding 4,769 long live cattle futures positions, bringing their net-long positions to 58,972. There were 1,687 long positions added to feeder cattle, increasing their net-long futures positions to 9,085 contracts.