DTN Early Word Opening Livestock 05/01 06:35

DTN Early Word Opening Livestock 05/01 06:35 Continued Pressure Expected Changing the page on the calendar is expected to have little impact on overall market direction Wednesday morning. Underlying market softness is likely to redevelop in most contracts as traders search for underlying buyer support. By Rick Kment DTN Analyst Cattle: Steady Futures: Lower Live Equiv: $151.24 -0.37* Hogs: Lower Futures: Lower Lean Equiv: $ 87.23 -2.77** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Limited cash cattle interest is expected Wednesday morning, although packer bids in the South are likely to become more active through the session Wednesday following the limited trade late Tuesday. Bids are expected to redevelop around $122 to $123 live basis. Asking prices remain around $126 and higher live and $208 dressed. Most of the midweek activity is likely to be in the South, but trade could be spread out through the rest of the week. Firm weakness quickly developed in the feeder cattle trade, which has added additional underlying pressure going into early May. This is likely to keep the overall tone of the market weak as traders search for signs of renewed buyer support in both live cattle and feeder cattle trade. The strong pressure in the complex is opening the door for a market rebound in the near future, but cattle trade will need to stabilize first, and so far that has yet to happen.