DTN Early Word Livestock Comments 03/09 06:14

DTN Early Word Livestock Comments 03/09 06:14 Further Follow-Through Livestock Strength Is Questionable Cattle futures continued to rebound Wednesday as they correct from being oversold. Futures were overdone to the downside and corrected even though cash traded lower Wednesday. Hogs rebounded substantially as a reaction to strong cash with technical traders looking to close the chart gaps. Robin Schmahl DTN Contributing Analyst Cattle: Lower. Futures: Mixed. Live Equiv: $190.38 -$2.24* Hogs: Higher. Futures: Higher. Lean Equiv: $112.90 -$1.25** *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 futures showed over a $5.00 rebound from the lows reached on Friday. That is an impressive short-covering rally and an indication of the volatility that will be present for the foreseeable future and not just in cattle, but all commodities. Unfortunately, the strength may be limited as cattle traded $2.00 lower Tuesday. This brings the April contract in line with cash. This certainly is unfortunate, but it was not unexpected given the rise of feed prices. Feedlots want to move cattle rather than hold out and bargain for higher prices that may not happen anyway. Packers continue to see erosion of boxed beef prices with select down $2.27 and choice down $5.28 Tuesday. The World Agricultural Supply and Demand report will be released Wednesday, which may result in some wild swings in the grain markets.