DTN Early Word Livestock Comments 03/04 08:08

DTN Early Word Livestock Comments 03/04 08:08 Markets May Have Tariffs Factored In Cattle futures bounced off the lows on Monday but closed lower. Further liquidation was likely due to the tariffs on Canada, Mexico, and additional tariffs on China that went into effect Tuesday. Hogs likely had this factored in and had short-covering take place as the fear is now a reality. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Higher Live Equiv: $231.00 +$1.11* Hogs: Higher Futures: Higher Lean Equiv: $105.55 +$1.37** *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 bounced off their lows on Monday but could not find sufficient buying interest to move futures into positive territory. The implementation of tariffs on Canada, Mexico, and additional tariffs on China on Tuesday has put pressure on the market. China will retaliate beginning March 10 with a 10% tariff on beef and pork among other agricultural products, with 15% on chicken, wheat, and corn. It is uncertain whether this will curtail demand for these products, which will be more expensive. However, higher prices may result in consumers purchasing less of it. It is uncertain whether the market has this already factored in. Boxed beef prices were higher Monday with choice up $2.10 and select up $0.36.