DTN Early Word Opening Livestock 03/04 06:39

DTN Early Word Opening Livestock 03/04 06:39 Market Uncertainty Continues Despite the strong start to the week in livestock trade and early triple-digit gains in cattle futures, the inability to hold gains Tuesday brings back the reality that market volatility continues. This could mean additional market shifts in either direction over the next few days. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $138.09 +0.42* Hogs: Steady Futures: Mixed Lean Equiv $ 70.93 -0.50** * 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 interest has yet to be seen in cash cattle markets with feeders and packers still hesitant to place their foot on base given the uncertainty of direction in futures and wholesale beef values. Although it is still expected that light-to-moderate cash trade will be needed by the end of the week, it could be Wednesday or later before feeders put firm prices on cattle for the week, and bids could be delayed until the last half of the week. The lack of aggressive selling pressure in futures trade last week is helping cash participants not panic, but feeders seem content to try to dig prices out of last week's price depression in order to focus on a more fundamentally balanced market level. Futures trade is expected mixed in limited early trade following the moderate-to-strong price pressure developing late Tuesday. Traders are focusing more on the inability to hold strong early gains, which indicates that initial support Tuesday was overextended, but the strong push lower in the stock market had a lot to do with the change in cattle market mentality. The Dow Jones went from a triple-digit gain to a triple-digit loss by the end of the day Tuesday as renewed concerns about how coronavirus will affect the economy and overall consumer demand for most products. This is expected to keep live cattle and feeder cattle trade mixed in early trade, and once again dependent on the movement in outside markets. Wednesday slaughter is expected near 121,000 head.