DTN Early Word Livestock Comments 03/05 06:22

DTN Early Word Livestock Comments 03/05 06:22 Cattle May Struggle to Find Footing Tuesday Cattle futures could not extend Friday's rebound on Monday as traders gave a pause after the strength. Live cattle could not push through the price resistance of last week with the weakness of feeder cattle pressuring live contracts. April hog futures struggled while later contracts had a nice rebound into the close. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $225.41 +0.38* Hogs: Higher Futures: Mixed Lean Equiv: $98.64 -$1.63** *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: Chart resistance is developing in live cattle futures, which may be a formidable level to break through in the near term. Boxed beef prices closing mixed Monday may increase the concern over continued strength as prices may be reaching consumer resistance. Choice cuts were up $1.02 with select down $0.57. Packers reducing slaughter to improve margins may impact demand. The current expectation is for cash to be steady this week, but it is too early to tell who will be more aggressive with no bids or offers posted. Packers have been able to purchase some cattle for deferred delivery, putting them in a better position this week to hold the line on prices. Feeder cattle continue to command high prices at auctions as tight supplies continue to require more money to purchase them.