DTN Early Word Opening Livestock 08/27 06:22

DTN Early Word Opening Livestock 08/27 06:22 Market Volatility Remains Elevated Livestock market volatility remains heightened following the wide-ranging back-and-forth market shifts the last couple of weeks. Monday's trade optimism is fading quickly as traders look for additional support. By Rick Kment DTN Analyst Cattle: Steady Futures: Lower Live Equiv: $152.46 -0.06* Hogs: Lower Futures: Lower Lean Equiv: $ 83.81 -0.66** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Interest in cash cattle trade is expected to remain limited through most of the morning. A few initial asking prices restated is expected, but nothing of significance is likely to develop until midweek or later. Bids are unlikely early Tuesday, and when they do develop later in the week, limited initial movement from last week is likely. It is likely that asking prices will redevelop around $108 to $110 in the South and $178 to $180 in the North, while bids later in the week would likely start near $103 to $104 in the South and $172 in the North. That being said, both sides are likely to wrap things up before late day Friday ahead of the long holiday weekend. Limited attention is being put on the lower daily slaughter numbers as the freshness of the Tyson plant fire has faded and packers settle in to the "new normal," at least until the damaged plant comes back online. Daily slaughter levels have settled around 116,000 head with increased Saturday runs making up the difference between previous production the last two weeks. This is expected to be the new norm as overall plant throughput is likely to have little net change through the rest of the summer. Keeping up with increased supplies through the fourth quarter of the year is likely going to be the biggest challenge, but currently, cattle futures and trade is so short-term focused given the recent market gyrations that late year production capacity is still on the back burner of issues to deal with.