DTN Early Word Opening Livestock 08/15 06:23

DTN Early Word Opening Livestock 08/15 06:23 Continued Short-Covering Expected Thursday Cattle futures are expected to shift higher on hopes that renewed buyer support following the early week tumble can bring market stability. By Rick Kment DTN Analyst Cattle: Lower Futures: Higher Live Equiv: $145.11 +3.66* Hogs: Steady Futures: Mixed Lean Equiv: $ 94.07 -0.98** * 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 through the South developed Wednesday afternoon with prices generally $105 per cwt live. This is $5 per cwt lower than last week, and may set the tone for the weekly market trend given the early week pressure in futures trade. Limited activity developed in the North with prices around $170 per cwt. The amount of volume in the North is not enough to establish a good market trend, but it did get the ball rolling for the week as both sides slowly stepped up to the plate. Additional trade is expected to develop in the next two days. Even though packer interest should improve significantly Thursday, given the volatility in both futures trade and wholesale beef values, feeders seem to be in little hurry to make deals at the lower price levels. Futures trade is expected to be generally higher with follow-through support likely after the midweek rally. Feeder cattle futures hit limit gains at closing bell, allowing another day of expanded trade limits of $6.75 per cwt. It is likely that markets will be much more subdued than Wednesday levels, as traders try to reestablish more realistic market norms given the lower plant capacity over the short and long term. Growing concern of overall economic support and follow-through pressure in stock markets may limit upside market support through the end of the week also.