DTN Early Word Opening Livestock 05/06 06:34

DTN Early Word Opening Livestock 05/06 06:34 Tariff War May Escalate The cattle complex continued the fall on Friday as traders saw no reason to take profits on short positions into the weekend. Weak cash last week will set the tone this week as buyers will post lower bids. Despite lean hog futures being able to hold on Friday, the announcement by President Trump that higher tariffs on China will be implemented this Friday might have a bearish impact on pork. By Robin Schmahl DTN Analyst Cattle: Steady Futures: Lower Live Equiv: $148.26 -1.00* Hogs: Lower Futures: Lower Lean Equiv: $ 86.98 -1.95** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Last week was not kind to cattle producers with cash taking a tumble of $3 to $5. The continued steep decline and no short-covering into the weekend will keep the markets on the defensive. Packers will start the week with lower bids attempting to capitalize on the weakness of futures. There still is no bottom to the market even through it is severely oversold. Funds continue to liquidate long positions, which could mean more downside.