DTN Early Word Opening Livestock 08/26 06:13

DTN Early Word Opening Livestock 08/26 06:13 Trade Fight Takes Center Ring Once Again The escalation of tariffs between China and the U.S. on Friday will continue to spark additional concerns in the livestock market as these moves will likely heavily impact outside markets also. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Lower Live Equiv: $152.54 -1.58* Hogs: Lower Futures: Lower Lean Equiv: $ 84.47 -0.33** * 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 early in the week following light-to-moderate trade that developed Friday. Cash cattle prices ended last week generally $1 per cwt higher in the South with most cattle selling at $106 per cwt, and $4.50 per cwt higher than last week's average at $175 dressed in the North. Showlist distribution and inventory taking is expected to be the main focus across the cash markets with trade likely to be pushed off until midweek or later. With the upcoming holiday weekend, it is likely that both sides will desire to wrap things up before late Friday afternoon. Friday's Cattle on Feed report is expected to be viewed slightly bullish with generally steady cattle on feed numbers of steady with last year levels and slightly under pre-report estimates. Placements were 2% lower than last year, and well below expected numbers. Cattle marketed came in above pre-report estimates, which should help to limit overall market pressure. But it is likely that any report news or potential support from recent beef values will be quickly washed away given the expansion of the trade war on China. The announcement early Friday that China will add tariffs to all remaining imports and increase tariffs already put into place will impact beef products. Late Friday President Trump announced increased tariff levels on all Chinese imports, sparking additional tensions that may keep the cattle complex under significant pressure in the near future.