DTN Early Word Livestock Comments      03/23 06:16
   Cattle Futures Expected to Open Lower

   Cattle futures closed higher, likely as a result of cash cattle trading at
even money with the previous week and the expectation for a neutral Cattle on
Feed report. Hog futures followed through on the weakness from Thursday, being
unable to find anything solid to support the market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower     Live Equiv: $293.05 +$0.01*

   Hogs: Higher            Futures: Higher     Lean Equiv: $105.16 +$1.15**

   *Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The 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:

   Cash cattle managed to trade at even money with the previous week, which is
considered a victory given the uncertainty of the market. However, even with
cash being steady, packers purchased cattle for deferred delivery as feedlots
were willing to move more cattle at the steady price. This may put packers in a
better position this week. The Cattle on Feed report was released and is
considered to be bearish for the market. The surprise was the placement number.
The average estimate was 100.3%, with the actual number at 104%. This marks the
first such month since April 2025 that placements over 100%. On feed numbers
were 100% and slightly higher than the 99.3% estimated. Marketings were
slightly better at 93% versus the 92.4% estimated. This is a bearish report and
should negatively impact the market today. Boxed beef prices were mixed, with
choice down $0.19 and select up $0.49. The Commitment of Traders report showed
a reduction in the funds' live cattle long positions by 2,767 contracts to
103,143. Fund traders increased their net-long position in feeder cattle by 662
contracts totaling 19,374.