DTN Early Word Livestock Comments 03/22 06:19
22 Mar 2022
DTN Early Word Livestock Comments 03/22 06:17 Cattle May See Further Weakness Live cattle futures drifted along Monday, providing no concise direction. Feeder cattle were under pressure due to higher grain prices. Hog futures seemingly exploded technically, as cash and cutouts did not support the move. Robin Schmahl DTN Contributing Analyst Cattle: Steady. Futures: Mixed. Live Equiv: $194.33 +$0.49* Hogs: Steady. Futures: Mixed. Lean Equiv: $109.12 -$3.34** *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 were in a tug-of-war Monday between higher grain prices and the prospect of higher cash. Futures traded on both sides of unchanged and eventually closed mixed. Showlists were distributed Monday with no cash business taking place with none expected to develop. Feedlots will want more to compensate for higher feed prices and want more of the packers share of profits. Boxed beef was higher again Monday with choice up $0.34 and select up $1.85. The recent strength of boxed beef potentially indicates boxed beef has found a bottom. Cattle ranchers and feedlots in Nebraska plan to build a $325 million processing plant to compete with current meatpacking companies who have been blamed for low cattle prices. The new company, Sustainable Beef LLC, is a step to provide competition for the four largest packing companies that process around 85% of the nation's beef. The Commitment of Traders report showed funds as net buyers of 1.593 futures contracts bringing their total of net long positions to 40,144.