DTN Early Word Opening Livestock 09/06 06:26

DTN Early Word Opening Livestock 09/06 06:26 Late-Week Positioning Expected in Livestock Futures Combined cash market weakness and expected growing market-ready cattle supplies adds additional pressure to futures complex. Lean hog futures are expected to balance between long-term demand hopes and growing supplies as they finish out the week. By Rick Kment DTN Analyst Cattle: Lower Futures: Mixed Live Equiv: $147.43 -1.59* Hogs: Lower Futures: Mixed Lean Equiv: $ 76.76 -0.90** * 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 developed in the South Thursday, adding to midweek losses in the North the day previous, with Southern cattle trading at $100 per cwt, $2 to $3 per cwt lower than last week. Northern cattle traded at $167, a $4 per cwt loss from last week, creating general disappointment in the continued market weakness. Although some additional trade is likely to develop sometime Friday, the tone of the market appears to be set unless there is a major unexpected shakeup in futures or boxed beef values. The erosion of boxed beef values the last couple of days has also caused increased underlying concern that further pressure is expected through the rest of the live cattle futures trade. This started to unfold Thursday with nearby contracts quickly eroding as technical pressure moved into the complex and posted contract lows. Although limited focus is expected on short-covering activity, which may bring buyers back to the table, the underlying tone in the market continues to remain weak. Even the positive news about Tyson getting the Holcomb plant up and running by January was not enough to offer price support.