DTN Early Word Opening Livestock 02/05 06:33

DTN Early Word Opening Livestock 02/05 06:33 Limited Market Activity Expected Wednesday Following the aggressive market losses over the last two weeks, the narrow to moderate price swings are showing an attempt to build market stability back into livestock trade during early February. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $141.16 -0.22* Hogs: Steady Futures: Mixed Lean Equiv $ 72.99 -1.71** * 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 markets continue to remain quiet going into Wednesday morning with asking prices and bids still hard to pin down in most areas of cattle country. The delay in cattle being priced appears to be focused on outside market moves as feeders are still expected to price cattle above last week's levels, but they are not going to shoot themselves in the foot in the event that aggressive follow through futures pressure develops in the coming days. Through the morning, it is likely we will see much more pricing activity, although bids may be delayed until either late in the day or further out in the week. Given the aggressive packer schedules planned for this week again, it is likely that packers will need to remain moderately active through the week, but it could easily be Thursday or Friday before trade starts to develop. Futures trade is expected mixed as initial short-covering activity may develop after buyers were unable to hold early gains Tuesday. There is less focus on moving prices higher at this point given the soft movement in beef values and uncertain cash market trade, but the ability to hold prices above last week's lows will remain significant in rebuilding short- and long-term market support. Wednesday slaughter runs are expected near 122,000 head.