DTN Early Word Livestock Comments 03/21 06:12

DTN Early Word Livestock Comments 03/21 06:12 Traders Approach Week With Caution Live cattle futures were able to close higher Friday as well as for the week. Steady to higher cash along with sideways to slightly weaker corn futures over the past two weeks allowed feedlots to hold with some confidence. Hogs did not follow the same pattern but continued the weakness that began on Thursday. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Mixed Live Equiv: $193.84 +$0.54* Hogs: Steady Futures: Higher Lean Equiv: $112.46 -$0.31** *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: The ability of cash cattle to trade steady to higher was a victory, allowing futures to close higher for the week. April gained nearly $3.00 since the previous week. June gained over $4.00, reaching the highest level since Feb. 28. There is potential for limited upside due to higher energy and food prices and how that could impact overall demand. Beef exports last week were down substantially from the previous week and may be an indication of weakness to come. However, the bright side of this is that cumulative exports so far this year have reached 419,400 metric tons (mt). This is 15,800 mt more than a year ago and the highest on record for this time of year. Boxed beef prices were mixed Friday with choice up $1.11 and select down $0.03. Feeder cattle closed the chart gaps left from the previous day, keeping futures somewhat in a sideways trading range for the week.