DTN Early Word Livestock Comments 03/13 06:16

DTN Early Word Livestock Comments 03/13 06:16 Hogs Futures May Show Further Unwinding of Spreads Wednesday Live cattle futures were higher Tuesday with contracts remaining in the sideways pattern they have been in the past few weeks, supported by stronger boxed beef prices. Hogs finally saw some unwinding of spreads, which pushed April over $2.00 higher. Strong cash provided the support. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $228.56 +$1.00* Hogs: Higher Futures: Higher Lean Equiv: $98.39 -$1.04** *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: Live cattle continue to trade in a range. There is overall optimism prices will increase over time, but fundamentals will need to provide further support to the market before futures break out to the upside. Boxed beef continues to be supported with choice up $1.17 and select up $0.72 on Tuesday. However, that will need to be supported by stronger cash trade this week or futures may remain rangebound. The April contract already has higher cash factored in. Feedlots have posted asking prices in the South at higher prices, but bids have not been posted. Packers will try to hold the line this week after paying more for cattle last week. Feeder cattle futures were higher but have developed a slight downtrend.