DTN Early Word Livestock Comments      03/16 06:21
   JBS Plant Strike to Take Center Stage

   Traders positioned themselves ahead of the weekend with cattle futures
posting moderate losses. Hog futures were lower on the third day of liquidation.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $291.63 +$0.56*

   Hogs: Higher            Futures: Mixed     Lean Equiv: $106.15 -$0.17**

   *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 finished the week lower following the pattern seen earlier in
the week. Southern cattle were $4.00 to $5.00 lower, with Northern dressed
cattle $8.00 lower. Unfortunately, the early expectations are for lower cash
this week. The reduced slaughter pace has bolstered boxed beef values, moving
packers' margins into the black. Boxed beef prices were higher, with choice up
$0.83 and select up $0.72. With margins being positive, most often packers will
increase slaughter to take advantage of positive margins. However, that may not
take place this week, with the strike taking place at the JBS Greeley plant and
cattle being shifted to other facilities. Last week, the April live cattle
futures contract had a price range of $5.72 last week, with April feeders
posting a price swing of $11.72. This was rather calm considering the previous
weeks. The Commitment of Traders report showed fund traders reducing their
net-long live cattle futures positions by 6,134 contracts to 105,910. Funds
were net sellers of 229 feeder cattle futures, reducing their net-long position
to 18,712 contracts.