DTN Early Word Opening Livestock 06/21 06:08

DTN Early Word Opening Livestock 06/21 06:08 Follow-Through Pressure Likely Friday Sharp losses developing in all livestock trade Thursday sparked increased underlying weakness in the entire complex. A combination of follow-through selling and end-of-week short-covering is likely early Friday morning. By Rick Kment DTN Analyst Cattle: $2 to $4 Lower Futures: Lower Live Equiv: $142.53 +0.44* Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 82.43 -0.25** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Light-to-moderate cash cattle trade developed in most areas Thursday afternoon. Although some additional clean-up trade may develop during the day on Friday, a weaker tone is expected. Live cattle traded from $108 to $110 per cwt. This is mostly $2 per cwt lower than last week. Dressed trade in the North was reported at $178 to $183, mostly $181 to $183 per cwt. This is generally $3 to $4 per cwt lower than last week as packers were able to focus on fears that further pressure may develop later in the summer after the Fourth of July holiday. The sluggish movements in beef values has also eroded plant margins, causing packers to reduce spending and will likely slow overall production levels during late June and early July. Futures are expected mixed to mostly lower with the firm losses in feeder cattle trade sparking increased underlying weakness. At this point, the market remains technically stable, with prices still hovering within the wide sideways trading range seen the last couple months. Attention through late Friday is expected to also move to the afternoon Cattle on Feed report. Expectations are mixed ahead of the report. If cattle on feed and placed numbers come in near estimates, it is likely that the report will have little market impact.