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DTN Early Word Opening Livestock 09/04 08:58

4 Sep 2019
DTN Early Word Opening Livestock 09/04 08:58 Hog Futures Expected to Build on Strong Gains Limit gains flooding the lean hog complex is expected to stimulate additional follow-through buying early Wednesday morning. This comes while the hog complex still faces many demand challenges through the end of the year. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $149.70 -.58* Hogs: Lower Futures: Higher Lean Equiv: $ 79.40 +2.29** * 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 trade remains quiet heading into midweek. The focus on moderate-to-strong support futures trade is creating the hope and expectation of more stability in cash cattle trade through early September, but the entire market remains generally uncertain given the passing of the Labor Day holiday and still strong cattle supplies looming over the upcoming months. Just a few cattle sold in Iowa late Tuesday, at $170 per cwt dressed basis. This is not enough trade to accurately determine a market trend in any area, but the early trade is a little surprising given the holiday on Monday. Bids and asking prices are expected to remain generally sluggish through Wednesday morning, although some packer improvement may happen as the day continues. This may spark some additional underlying support through the rest of the week, although the hurricane along the East Coast is also expected to create uncertainty about overall beef product movement in many of the areas affected by the storms. Futures trade is expected to be mixed-to-moderately higher with follow-through support developing across the cattle complex. Although live cattle futures pulled back from session highs, the ability to hold positive price moves going into the close is encouraging and likely to stimulate follow-through buyer support.