DTN Early Word Opening Livestock 02/03 06:34

DTN Early Word Opening Livestock 02/03 06:34 Livestock Markets Search for Early-Month Support Sharp triple-digit losses in lean hog trade late last week have left the complex oversold, but unable to show any sign of buyer interest moving into the tumbling market. The potential to create market stability in hog trade is being closely watched early Monday morning. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $142.74 -0.34* Hogs: Steady Futures: Mixed Lean Equiv $ 74.43 -1.46** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Following weaker cash cattle trade and a bearish market structure last week, limited focus is going to be placed on cash cattle activity early Monday. Showlist distribution and inventory taking is likely to be the extent of cash market interest with asking prices and bids likely to be pushed into midweek or later. Cash cattle ended lower in all areas last week with live southern trade developing on Wednesday and Thursday generally at $122 per cwt with a full range from $119 to $122 per cwt. This is $2 per cwt lower from the previous week. Northern dressed trade did not become active until Friday with prices from $193 to $196 per cwt, mostly $195, which is a $4 per cwt drop from the week before. The focus on creating market stability in cash markets will need to be supported by firm buying support moving into futures trade and stability of beef values. Futures trade is expected mixed in limited early trade Monday. With live cattle futures falling $4.63 per cwt in April contracts last week, the market still remains oversold, but given the weaker structure in all livestock markets, there has been little interest in aggressively offsetting the market pressure from the last couple of weeks. The cattle inventory report released Friday afternoon brings a mixed bag to the table. While overall cattle numbers have shifted slightly lower, including a pullback in beef cows, the confirmation of increased cattle on feed as of January is likely to have the most immediate impact on overall market direction. Monday slaughter runs are expected near 121,000 head.