DTN Early Word Livestock Comments 03/12 06:18

DTN Early Word Livestock Comments 03/12 06:18 Live Cattle Futures to Trade Sideways Tuesday Live cattle traded on both sides of unchanged Monday, while feeder cattle remained weak throughout the day. There is concern packers will not need to be aggressive this week as they continue to cut back slaughter pace to improve margins. Hog futures were again under pressure in nearby months with later contracts higher in spread trading. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $227.56 +$1.29* Hogs: Higher Futures: Higher Lean Equiv: $99.43 +$1.40** *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: Traders expressed their concern over the potential for cash trade this week. The gains last week were a victory feedlots will want to capitalize on; but packers will not be so apt to be aggressive. They continue to reduce slaughter to improve margins, which is increasing boxed beef prices. However, it does not seem to be backing up supplies in the country. Feedlots will post higher offers but may need to move some cattle if they are ready for the market. The packers were able to purchase cattle for deferred delivery last week, potentially leaving them less aggressive. Boxed beef increased Monday with choice up $1.84 and select up $1.45. Feeder cattle futures could not find any price strength with contracts opening steady and then spending most, or all, of the day in negative territory.