DTN Early Word Opening Livestock 02/05 05:47

DTN Early Word Opening Livestock 02/05 05:47 Continued Support Expected Increased volatility is likely early Tuesday focusing on early-week gains. A combination of follow-through buying and aggressive market positioning is expected in early-morning trade as traders take advantage of the wild market shifts. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $145.06 +1.04* Hogs: Steady to $1 Lower Futures: Higher Lean Equiv: $ 72.66 +1.13** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Buyer support is expected to redevelop in initial trade Tuesday morning as traders respond to the rally off recent market lows in feeder-cattle trade and try to push prices higher through early February. Even though the focus is on expanding prices higher in both live cattle and feeder cattle futures, the potential for position-taking after the sharp Monday rally is increasing. This could allow for widespread market volatility through morning trade, although the firming tone of the market is expected to continue through most of the week. Cash cattle activity is expected to remain sluggish as bids and asking prices remain undeveloped and likely will remain that way until Wednesday or later. Increased cattle on showlists could give an opportunity for packers to get caught up on buying needs, although feeders are expected to be aggressively pricing cattle through the week.