DTN Early Word Livestock Comments 03/01 06:15

DTN Early Word Livestock Comments 03/01 06:15 Livestock Complex Continues to Struggle The livestock complex was again under pressure Monday. Rising grain prices had substantial impact on feeder cattle with some spillover pressure on live cattle and hogs. It may be difficult for futures to show much strength Tuesday due to the increase of grain prices again overnight. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Lower. Live Equiv: $194.86 -$0.80* Hogs: Higher. Futures: Mixed. Lean Equiv: $119.72 -$1.05** *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: Live cattle could not retain initial strength, as spillover pressure from feeder cattle impacted futures. Feeder cattle reacted to strong grain price and may likely do the same Monday. Traders had nothing else to provide much strength as boxed beef resumed weakness. Choice was down $0.76 with select down $2.00. There was no interest shown in the cash market Monday and likely will not be any Tuesday. However, feedlots may not be in the position to hold out for higher prices this week as grain prices are escalating. The conflict in the Ukraine is hindering exports and if it continues to drag on, it may be difficult for farmers to plant some of their crops this year, which will push grain prices higher. Holding out for higher cash may not be profitable. Packers continue to see dwindling profits which may leave them less aggressive. The Commitment of Traders showed funds trimming their net long positions by 628 contracts with their current net longs at 85,433 contracts.