DTN Early Word Opening Livestock 05/07 06:43

DTN Early Word Opening Livestock 05/07 06:43 Expanded Limits for Hogs Increases Bearishness Monday was not kind to the livestock complex with more Katy-bar-the-door selling continuing. The oversold condition should trigger buying interest by technical traders, but so far, if they have stepped in, they were run over. Bottom-picking is tough when there is no bottom. Volatility in the hogs was nonexistent Monday as futures opened limit down and remained there all day. By Robin Schmahl DTN Analyst Cattle: Steady Futures: Lower Live Equiv: $148.31 +0.05* Hogs: Lower Futures: Lower Lean Equiv: $ 87.86 +0.88** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Technical support for the June contract at the low of $111.60 from Nov. 13, 2018, was nearly reached Tuesday but did not penetrate it. This could be an area some traders could step in to see if a bottom may have been reached. The severe decline makes it ripe for a retracement, but pressure from hogs and the uncertainty from political issues might make this weak support. With hogs limit-down Monday, some traders turned to the cattle complex to spread their risk or to increase their short positions. Cutouts were mixed, which could provide a little ray of hope. Packers are not anxious to bid aggressively early in the week.