DTN Early Word Livestock Comments 03/05 06:08

DTN Early Word Livestock Comments 03/05 06:08 Tariffs are on With Traders Uncertain Over the Impact Cattle futures seemed to have the uncertainty of the market factored in. This provided some short covering and a bounce in futures. Higher boxed beef prices provided support. Hog futures could not find support as tariffs remained an anchor on the market. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Higher Live Equiv: $231.67 +$0.67* Hogs: Higher Futures: Mixed Lean Equiv: $103.53 -$2.02** *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 rebounded substantially from the lows as traders digested the beginning of the tariffs put on Canada, Mexico, and China. The market seemed to take it in stride, and now that it came to fruition, traders determined that the market had it already factored in, and prices needed to correct. It is too early to tell whether this will be a trend reversal or if it was just a day of short-covering by the funds in case there is another expected change. Cash cattle did not trade on Tuesday and likely will not trade today. The general idea is that cash will be lower again this week. Boxed beef prices increased but likely not enough to provide strong support to the market. Choice cuts gained $0.92 with select cuts up $1.61. The packers will need to see a consistent increase in prices to indicate stronger demand. Feeder cattle closed mixed, remaining uncertain over the impact of tariffs.