DTN Early Word Livestock Comments 03/15 06:03

DTN Early Word Livestock Comments 03/15 06:03 Livestock Futures Expected to Hold Gains Cattle futures reacted positively to lower corn futures. The same might be true Tuesday, however there is no indication as to the strength or weakness of cash cattle this week. Hogs were mixed with some spread trading taking place again putting pressure on April. Cash began the week higher, which is positive to the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $192.61 +$0.51* Hogs: Higher. Futures: Higher. Lean Equiv: $110.76 +$0.64** *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: Cattle showed strong gains Monday even though cash had not yet traded. Lower corn futures provided the catalyst traders needed to buy aggressively for at least a short-term trade. Further discovery of the highly pathogenic avian flu in a quarter of U.S. states may be providing some support as well, as it could have a positive impact on beef demand if it continues to flourish. Most cases are in backyard flocks at the present time with a few commercial flocks affected. However, the greater issue being faced may be inflation and its impact on demand. There is hope that higher cattle futures may translate over into at least steady cash. Boxed beef showed further gains with choice up $0.80 and select up $0.83. The Commitment of Traders report showed funds reducing their long futures positions 20,851 contracts to a net long of 36,6356 contracts.