DTN Early Word Opening Livestock 01/10 06:24

DTN Early Word Opening Livestock 01/10 06:24 Cash Cattle Trade Expected Sometime Friday Following a wide gap between asking prices and bids through the last couple of days, cash cattle trade will be another late-week affair. It is likely that active trade will be pushed off until after the morning USDA crop reports. By Rick Kment DTN Analyst Cattle: Higher Futures: Higher Live Equiv $140.45 +0.43* Hogs: Steady Futures: Mixed Lean Equiv $ 77.74 +0.09** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: It is the first full week of January and markets are essentially back to full volume following the holiday weeks, so cash cattle trade will be a major test of just how bullish cash markets will become during early 2020. Asking prices have remained unwavering all week with live cattle in the South priced at $127 per cwt while dressed cattle are maintaining asking prices of $202 o $203 dressed in the North. Bids have been unwilling to show significant movement since midweek, but without a major free fall in futures, prices will have to improve significantly in order to get cattle bought for the week. A few cattle were sold in Iowa Thursday on a dressed basis of $198, generally where most bids were set over the last couple of days. But feeders are firmly looking at steady-to-higher money than last week in order to pull the trigger, and likely willing to hold any unsold cattle over until next week. Futures trade is expected steady to firm with limited buyer support likely through Friday morning. The underlying firmness through the end of the week is helping to build some solid support in live cattle and feeder cattle trade. With prices still remaining just under long-term resistance levels, but hovering in the top end of the recent market range due to strong fundamental support, the potential for a strong break higher in the coming weeks remains likely. Friday slaughter runs are expected near 119,000 head.