DTN Early Word Livestock Comments 03/20 06:23

DTN Early Word Livestock Comments 03/20 06:23 Traders Will Search for Direction Wednesday Cattle futures floundered Tuesday, unable to establish any solid direction. Hogs were under pressure as the a price correction was needed in an overbought market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $230.69 -$0.02* Hogs: Higher Futures: Mixed Lean Equiv: $99.29 +$0.21** *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 chopped around Tuesday with traders lacking strong conviction over price direction for the week. The Cattle on Feed report is on the horizon, which may keep traders unwilling to increase their positions ahead of the report. There is the feeling that cash could be slightly higher this week, but trade may not develop until Friday as it does many times during the week of the report. Boxed beef prices were mixed with choice down $0.11 and select up $0.13. It is unlikely futures will see any significant pressure due to market fundamentals even if the report on Friday is somewhat negative. The tightness of the market continues and may continue for quite some time. Feeder cattle did not decouple from live cattle trading activity with futures developing a sideways trading pattern.