DTN Early Word Livestock Comments 03/06 06:20

DTN Early Word Livestock Comments 03/06 06:20 Livestock Futures May Remain Choppy Wednesday The cattle complex was able to gain on Tuesday most of what was lost Monday, keeping the market in a sideways pattern. Hog futures could not find solid footing with the front-month April contract posting a second day of substantial loss. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $224.71 -$0.70* Hogs: Steady Futures: lower Lean Equiv: $97.25 -$1.39** *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: Cattle futures rebounded Tuesday as the market moved in a sideways trading pattern. There is optimism that cattle prices will move higher, but there is pessimism that the upside may be limited. Tighter cattle numbers should provide support, but higher beef prices may result in slower demand for beef. Boxed beef price declined Tuesday with choice down $1.51 and select down $0.30. Cattle are not expected to trade Wednesday as packers may wait to see if feedlots will lower their offers as the week progresses. The packers may not need to be aggressive as they purchased some cattle ahead last week. The demand for feeder calves and cattle continues to remain very strong. Buyers are chasing prices higher to obtain ownership in anticipation of live cattle prices remaining strong or becoming stronger as the year progresses.