DTN Early Word Opening Livestock 05/14 06:37

DTN Early Word Opening Livestock 05/14 06:37 Reactionary Buying Expected Tuesday Traders are expected to enter the market with mixed trade levels Tuesday morning following the underlying early-week pressure. The overall pressure Monday will create market uncertainty, but the complex remains oversold. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $144.78 +0.54* Hogs: Steady Futures: Mixed Lean Equiv: $ 93.25 +2.08** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle activity is expected to remain sluggish early Tuesday morning with bids and asking prices still undeveloped. But the overall tone of the market is expected to improve as packers start showing indications of needed supplies and the potential that early-week trade may be done. A significant amount of trade last week in the North was sold for delayed delivery, so it is uncertain just how aggressive packers will be once again since they bought cattle over a longer delivery point last week. Southern trade has started a pattern of trading cattle early in the week, and the next couple of days will determine if that trend will continue. Futures trade is called mixed with a combination of follow-through liquidation and short-covering developing in the entire complex. The potential bounce higher in outside markets may cause cattle futures to quickly shift away from early-week losses.