DTN Early Word Opening Livestock 05/02 06:16

DTN Early Word Opening Livestock 05/02 06:16 Hog Traders Focus on Export Sales Numbers The morning release of the Export Sales report will be the main focus in the lean hog complex Thursday. Traders are looking for increased sales to China in order to sustain the market rally that developed midweek. By Rick Kment DTN Analyst Cattle: $3 to $4 Lower Futures: Mixed Live Equiv: $150.40 -0.84* Hogs: Lower Futures: Higher Lean Equiv: $ 87.00 -0.23** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Light-to-moderate trade developed Wednesday in several areas with prices generally $4 to $5 per cwt lower than week-ago levels. Although some additional trade may need to develop in the next couple of days, especially in the North, the tone of the market appears to be set following early-week trade. This could add increased underlying softness to the entire complex as cash market support is trying to make early-month adjustments following additional futures and wholesale beef value pressure. Futures are expected mixed with a combination of follow-through pressure and short-covering expected early in the session. Late-day gains in grain trade Wednesday added to the uncertainty in cattle futures with firm pressure in live and feeder cattle trade at the end of the session. Very little has changed fundamentally for cattle or beef, with the recent market tumble driven by technical pressure. Given the still firm demand outlook, the beef complex remains oversold, with a strong market rebound possible in the near future.