DTN Early Word Opening Livestock 09/03 06:22

DTN Early Word Opening Livestock 09/03 06:22 Nervous Trade Entering September Traders return from the long holiday weekend with uncertainty and nervousness concerning overall meat demand while additional concerns surrounding global trade continue. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $150.28 -0.29* Hogs: Lower Futures: Lower Lean Equiv: $ 77.11 +0.73** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Last week cash cattle trade developed Thursday and Friday with light trade in the South, generally $3 per cwt lower than the previous week. Trade in the North took place Thursday for the most part, with a wide price range, but mostly $5 per cwt lower than the previous week. Despite extremely strong margins by packers remaining, the lackluster interest to trade cattle on a negotiated basis through the end of August quickly offset any hope of cash market support going into the month of September. Cash cattle activity is expected to remain sluggish Tuesday with showlist distribution and inventory taking the main order of business with both sides becoming more active midweek or later. The limited cash cattle trade over the last three weeks will likely add even more cattle to showlists, adding even more concerns on the overall market weakness. Cattle futures are expected mixed early Tuesday morning as traders continue to react to the lower cash cattle trade last week and limited positive news in the beef complex. Even though potential short-covering may develop through early September due to what still remains as an oversold market complex, the lack of positive news in the market and uncertainty about overall beef clearance over the holiday weekend may limit upside momentum during early September.