DTN Early Word Livestock Comments 03/11 06:14

DTN Early Word Livestock Comments 03/11 06:14 Mixed Trade Expected Monday as Traders Assess Demand Cattle rejected the move above the sideways trading range with April unable to close the chart gap. Cash cattle trade was higher, but that did not make any difference. Hogs climbed out of negative trade with contracts closing mostly higher Friday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $226.27 +$0.39* Hogs: Higher Futures: Higher Lean Equiv: $98.03 +$1.06** *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: April live cattle futures tried to close the chart gap but fell back before accomplishing the task. The higher cash trade was not enough to break futures prices out of the sideways trading range they have been in. Southern cattle traded $2 higher at $185 and Northern dressed cattle were $4 higher, which should have provided support. However, futures had that already factored in. This sets a good potential for cash this week as the packers need to purchase cattle to satisfy demand. Slowing the slaughter pace has improved boxed beef prices, but it has not backed up cattle in the country. Feedlots scored a victory last week and will attempt the same this week. Boxed beef prices were higher with choice up by $0.43 and select up by $1.17. The Commitments of Traders report showed funds increasing their long live cattle futures positions by 5,076 contracts to a net-long position of 64,048 contracts. Funds increased their long feeder cattle futures positions by 1,394 contracts to a net-long position of 10,479 contracts.