DTN Early Word Livestock Comments 03/18 06:18

DTN Early Word Livestock Comments 03/18 06:18 Two-Sided Trading Activity Expected Monday Most contracts in the livestock complex closed higher Friday, regaining some of the loss of Thursday. Higher cash cattle trade provided support with positioning ahead of the weekend. Hogs were supported by stronger cash and cutouts. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $229.87 +$0.70* Hogs: Higher Futures: Mixed Lean Equiv: $99.39 +$0.22** *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 traded higher for the week with Southern cattle up $1.00 and Northern dressed cattle gaining $4.00. This was impressive after higher cash the previous week. The packers have been trying to hold the line by slowing slaughter, but they have not been able to back up cattle in the country. Consumer demand continues to remain strong with boxed beef up again Friday: choice gaining $1.12 and select gaining $0.71. It will be an interesting week with feedlots likely holding for higher prices, but another week of higher cash may be difficult to obtain. Feeder cattle futures are in a downtrend and will need to find support to stabilize or reverse the trend. Feeders are still trading higher at auctions, which should help futures find support. The Commitments of Traders report showed funds increasing their long futures positions in live cattle by 3,299 contracts to a net long of 67,347 contracts. Funds sold 1,144 contracts in feeder cattle reducing their net-long positions to 9,335 futures contracts.