DTN Early Word Opening Livestock 01/07 06:23

DTN Early Word Opening Livestock 01/07 06:23 Additional Momentum Sought in Cattle Trade Traders are entering futures trade Tuesday with expectations of follow-through support following aggressive new year buying seen Monday. Limited early movement is likely in hog trade as traders continue to focus on outside market shifts. By Rick Kment DTN Analyst Cattle: Higher Futures: Higher Live Equiv $140.14 +0.79* Hogs: Steady Futures: Mixed Lean Equiv $ 79.67 +0.54** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Limited activity is likely in cash cattle trade early Tuesday morning, but the aggressive triple-digit rally in futures trade and firm boxed beef support is creating underlying bullishness to start out the first full week of 2020. With limited showlists available and overall market-ready cattle tightening the next few weeks, this is the opportunity for feeders to drive their stake into the ground and demand continued market support. Bids and asking prices may not be fully developed until midweek, likely pushing trade off until Thursday or Friday. Firm follow-through support is expected in futures trade as the aggressive triple-digit rally Monday was led by renewed support in feeder cattle futures as nearby January contracts held a $4.07 per cwt rally. The aggressive buyer support had more to do with active trade volume moving back into the complex following the holidays rather than a change in market direction, as most traders looked for underlying support to be developing through early January. Monday's rally broke the complex out of the sideways pattern in feeder cattle trade while live cattle markets continue to test resistance levels, but so far, have been unable to move to contract highs. However, the week is still young, with underlying bullish momentum still developing across the entire complex. Tuesday slaughter runs are expected near 121,000 head.