DTN Early Word Livestock Comments 03/06 06:17

DTN Early Word Livestock Comments 03/06 06:17 Traders Grapple With Market Uncertainty Livestock futures were higher in all categories on Wednesday. It seems the market has factored in the tariff situation and is correcting. There remains the possibility that some adjustment could be made to tariffs, which could limit the impact they could have on meat trade. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $230.70 -$0.97* Hogs: Lower Futures: Mixed Lean Equiv: $102.24 -$1.29** *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: Cattle futures posted triple-digit gains Wednesday with feeder cattle showing the most strength. This was the result of the market being overdone to the downside due to the impact that tariffs could have on trade. Short-covering took place as profits in short positions needed to be taken. The possibility of a compromise on trade could take place, which may limit the impact tariffs could have on beef trade. The strength on Wednesday was not from cash as some cattle were traded in Kansas $2.00 below last week and could set the stage for this week's trade. Boxed beef prices were lower with choice down $1.33 and select down $1.49. Packers continue to hold the line on the slaughter pace.