DTN Early Word Opening Livestock 08/01 06:01

DTN Early Word Opening Livestock 08/01 06:01 Market Weakness Likely Entering August Aggressive losses midweek has allowed for increased concern of follow-through liquidation as traders enter the month of August. Lean hog futures closed limit lower Wednesday, allowing for expanded trade limits. This may add even more uncertainty at opening bell Thursday. By Rick Kment DTN Analyst Cattle: Steady Futures: Lower Live Equiv: $137.31 -1.05* Hogs: Mixed Futures: Lower Lean Equiv: $ 92.42 +0.41** * 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 trade developed in several areas of cattle country Wednesday afternoon. Limited live trade in the South was reported at $111 per cwt, generally $1 per cwt lower. Northern trade was mostly dressed activity, ranging from $180 to $185 per cwt. Trade in the upper end of this range was scheduled for delayed delivery to regional packers. It is likely that additional cash market activity will be needed before the end of the week. With a new month on the books, price levels are far from set, but the previous weakness in futures may limit optimism through the end of the week. Asking prices remain at $114 and higher live basis, and $186 to $187 dressed. Limited futures trade is expected early Thursday morning as traders transition into the month of August. Follow-through selling pressure is expected to be met by early-morning and initial-month short-covering. Although moderate-to-wide market shifts may quickly develop as trade opens, the underlying tone of the complex is expected to remain under light-to-moderate pressure once again. Traders will also closely monitor outside market direction following the decision by the Federal Reserve to lower prime lending rates because it may have additional market implications during early August.