DTN Early Word Livestock Comments 03/14 06:20

DTN Early Word Livestock Comments 03/14 06:20 Optimism Increases for Higher Cash Cattle Thursday Live cattle futures moved out of their trading range Wednesday and are poised to move higher. Traders are optimistic cash cattle may trade higher this week. Hog futures could not find solid support, but nearby contracts were able to close about $1.00 above the lows. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $228.56 Unchanged* Hogs: Higher Futures: Mixed Lean Equiv: $97.76 -$0.63** *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: The cattle complex closed with triple-digit gains across the board Wednesday as traders became more optimistic over prices this week. Earlier in the week, there was a strong possibility cash cattle would trade steady to maybe lower due to the gains last week and cattle being purchased ahead for deferred delivery. That seems to have changed as feedlots are holding and asking for more. Trade should take place Thursday unless the packers want to play hardball and will wait it out and pay no more than steady cash. Boxed beef prices were mixed with choice down $0.77 and select up $1.44. Live cattle futures pushed and closed above the sideways trading pattern on Wednesday which could result in traders becoming more aggressive buyers. The April contract is poised to close the chart gap.