DTN Early Word Opening Livestock 06/27 06:18

DTN Early Word Opening Livestock 06/27 06:18 Follow-Through Cattle Gains Expected Renewed buyer support is expected to slowly develop in live and feeder cattle trade following sharp triple-digit gains Wednesday. Feeder cattle has access to expanded trading limits Thursday, allowing for potentially wide market swings through the end of the week. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $141.58 Unchanged* Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 78.96 -1.61** * 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 Thursday morning following limited interest earlier in the week. Although a few cattle have been sold in the North on a dressed basis at $180 per cwt late Wednesday, the market is still undefined. It is uncertain just how many cattle will need to be purchased this week due to the upcoming holiday weekend and cattle already committed for later delivery in early July. Initial token bids in the first half of the week were around $107 live and $175 dressed and are expected to be floated once again by packers, but unlikely to get any attention as asking prices are much higher in all areas. Asking prices are expected to remain at $112 to $114 per cwt live basis and $180 to $183 dressed basis, with some firmness possible in asking prices if futures trade continues to show support. The aggressive turn around in cattle futures Wednesday sparked limit gains in front-month feeder cattle futures. This will allow for expanded trading limits Thursday in all feeder cattle trade. The daily limit will move to $6.75 per cwt, allowing for increased potential market swings. Although it is premature to assume that strong follow-through support will continue to shift market trends higher, the move away from contract lows will not be lost on traders. Firm follow-through support is expected in all cattle trade Thursday morning, although initial support is likely to be curbed by moderate position-taking during early trade before active volume enters the complex. Beef values remain sluggish, although the shift higher in futures trade and expected firm holiday demand should help to improve overall movement in choice and select cuts.