DTN Early Word Livestock Comments 03/03 06:16

DTN Early Word Livestock Comments 03/03 06:16 Mixed Activity as Traders Wait for Price Direction The entire livestock complex fell substantially Friday as traders liquidated due to demand uncertainty and the potential impact of tariffs on exports. Feedlots sold cattle $2.00 lower as the hope for steady money faded. Hog futures continued to fall through support. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $229.89 +$0.32* Hogs: Lower Futures: Mixed Lean Equiv: $104.18 -$2.52** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Feedlots were hoping for no worse than steady money Friday, but the pressure on boxed beef prices during the week and the packers slowing slaughter pushed them into selling the cattle that were ready for the market. Holding for higher cash has not been profitable over the past weeks as those cattle were sold at yet lower prices. Southern cattle traded $2.00 lower at $197 while Northern dressed cattle traded $2.00 lower at $313. Feedlots may have difficulty achieving steady cash under the current market environment this week. Boxed beef prices were mixed on Friday with choice up $0.65 with select down $0.08. Boxed beef prices are expected to be under pressure again this week. Feeder cattle continue to remain in strong demand. It will be interesting to see whether the good prices will hold. The Commitments of Traders report showed the fund traders as net sellers of 7,593 futures contracts in live cattle, bringing their net-long position to 120,010. The funds sold 1,688 feeder cattle futures contracts, reducing their net-long position to 26,9769.