DTN Early Word Opening Livestock 03/17 06:33

DTN Early Word Opening Livestock 03/17 06:33 Yet Another Day of Expanded Trade Limits Following a $4.50 per cwt loss in select contracts in all livestock markets, expanded trading limits are available Tuesday. Although market firmness developed overnight in many commodity markets, concerns of further meat demand pressure is likely to keep livestock trade weak. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Lower Live Equiv $147.93 +9.84* Hogs: Steady Futures: Lower Lean Equiv $ 78.24 +3.54** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle trade broke out of its regular routine Monday with light trade in most areas of cattle country at lower money. The sharp losses early in the session, but a bounce in futures prices near midday seemed to create an opportunity for feeders to limit their losses, even though it took place early in the week. Live cash trade in the South ranged from $105 to $110 per cwt. This is generally steady to $5 per cwt lower with most sales $2 to $5 per cwt lower. Northern Dressed trade fell generally $5 per cwt to $170 per cwt during the limited morning trade. More cattle sales are expected, but at this point, it is uncertain if there will be a chance for additional stability in the complex. Boxed beef values posted record gains Monday with Choice cuts gaining $16.22 per cwt. The current market situation surrounding unknown long-term demand and panic buying keeping meat counters bare is adding to the wide market swings as the transportation and processing links of the meat market system continue to be the focal point moving forward. There are reports of empty store shelves, while significant restrictions have started to be put into place surrounding restaurant and bars closing and large (even small) gatherings halted. The short- and long-term impact on beef demand is not known at this time, but essentially shuttering many of the food service outlets will have a long-lasting impact on the overall demand for beef. Futures trade is expected to move swiftly lower once again despite the appearance that limited buying is starting to develop in other commodity markets. The meat complex can arguably be the most impacted of most major commodity markets by social distancing, and significant restrictions on the food service industry. Tuesday slaughter is expected near 119,000 head.