DTN Early Word Opening Livestock 05/28 06:37

DTN Early Word Opening Livestock 05/28 06:37 Increased Volume Likely Tuesday With traders stepping back into the complex following the long holiday weekend, additional volatility is likely given the wide hog market swings late last week. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $144.60 +0.81* Hogs: Steady Futures: Lower Lean Equiv $88.28 +0.65** * 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 interest is expected to remain quiet through most of the morning, although packers and feedlot managers will likely focus on becoming slightly more aggressive just because of the short trading week and delayed start. Show list distribution and inventory taking will be the main focus Tuesday with moderate availability expected. The weaker cash market trend over the last month has followed the softness in futures and cutout values, but traders continue to focus on firm upcoming demand through the next several days and weeks. Mixed futures trade is likely early Tuesday morning as traders step into the complex with Friday's cattle on feed data. Even though cattle on feed and placement numbers are elevated from year-ago levels, values came in well below market expectations which had been factored into the complex. This is likely to bring moderate buying support to select contract months, although the cattle market still struggles with growing supply levels.