DTN Early Word Livestock Comments 03/14 06:12

DTN Early Word Livestock Comments 03/14 06:12 Futures May Reflect Market Uncertainty The livestock complex closed higher but had little impact on any solid price direction. One has to wonder whether the markets may be at a comfortable level with supply and demand, leaving futures rangebound for a period of time. Robin Schmahl DTN Contributing Analyst Cattle: Lower Futures: Mixed Live Equiv: $192.10 +$0.54* Hogs: Higher Futures: Mixed Lean Equiv: $110.12 -$1.58** GENERAL COMMENTS: Packers achieved what they set out for last week and that was to pay less for cattle. Weeks of lower boxed beef prices eroded profitability and they were unwilling to give up any more profit. They used higher grain prices and the potential for yet higher feed prices to their advantage, knowing feedlots would want to move cattle. Demand for beef has been strong, but consumers seem to be moving away from higher end cuts of meat, requiring lower prices to move product. Consumers are paying higher prices for fuel and other goods, causing them to switch preferences. Restaurant demand is slowing, which will also have some impact on the cuts of meat consumers will purchase. Boxed beef prices increased Friday with choice up $0.77 and select up $1.74. Packers have some cattle purchased ahead for the next few weeks, leaving them potentially less aggressive this week.