DTN Early Word Opening Livestock 05/10 06:25

DTN Early Word Opening Livestock 05/10 06:25 Stability Sought Friday Morning Following another week of wild market pressure in livestock trade, traders appear to be focusing on end of week stability following redeveloping buying activity late Thursday afternoon. This may bring some needed stability to the entire complex even though long-term uncertainty remains evident. By Rick Kment DTN Analyst Cattle: $2 to $5 Lower Futures: Mixed Live Equiv: $144.67 -0.36* Hogs: Steady Futures: Mixed Lean Equiv: $ 91.79 +1.88** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cattle futures are expected to open mixed in limited volume following light-to-moderate buyer support able to wedge themselves back into the complex late Thursday. This could signify additional market firmness as traders start to build on the oversold status in the complex as well as increased overall buyer interest that has been building on the sidelines, but unwilling or unable to step into the bearish market structure until this point. Even though live cattle and feeder cattle futures will have little resistance moving higher once additional volume moves into the complex, it is likely that trade will establish a narrow-to-moderate range above current support levels with little emphasis put on moving prices back to springtime highs. This could establish renewed market structure around $108 to $112 per cwt in live cattle futures for the rest of May. Cash cattle trade appears to be finished for the week following the moderate-to-strong price pressure developing in trade Tuesday and Wednesday. The combination of aggressive early-week trade and focus on swift market pressure is causing both sides to go back to the drawing board the next few days and reassess longer-term direction and potential direction in the next couple of weeks.