DTN Early Word Opening Livestock 03/30 06:36

DTN Early Word Opening Livestock 03/30 06:36 Livestock Markets Struggle to Find Renewed Buyer Support Limit losses through the end of the week in all nearby livestock trade is opening the door for additional early morning pressure as concerns of expanding COVID-19 cases through the country add uncertainty about short- and long-term meat demand. By Rick Kment DTN Analyst Cattle: Steady Futures: Lower Live Equiv $164.81 -0.23* Hogs: Steady Futures: Lower Lean Equiv $ 78.68 -3.78** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The wild surge in cash cattle prices last week is expected to create a sense of hope that renewed interest will quickly move back into the complex. The tone of cash cattle markets last week were set before the strong pullback in futures trade. With markets well off long-term lows set during the middle of March, the focus on rebuilding long-term support and a continued need to keep packer lines active in order to meet current demand is expected to keep feedlot managers optimistic through the first few days of the week. Bids are unlikely on Monday with the focus on inventory and showlist distribution the main priority through most of the day Monday. The general tone of the cash market last week posted live prices in the South gaining $9 to $10 per cwt, while dressed business in the North was mostly $17 per cwt higher. The limit losses at the end of the week not only heavily impacted cattle trade, but quickly sent a message through all livestock futures that unchecked gains from the previous week would not last. Even though it is likely that support levels set during the middle of the month are not in danger, there are growing concerns that overall meat demand may not continue at the aggressive pace in March when retailers were scrambling to keep product on shelves. The expansion of coronavirus cases in the U.S. over the weekend has been incredible, creating even more concern that this will heavily impact consumer activity over the long term, not to mention the food service industry, which has essentially been brought to its knees through the virus pandemic. Expanded trading limits are available in all cattle markets with live cattle once again able to move $4.50 per cwt in either direction before markets are halted, while feeder cattle futures are limited to a $6.75 per cwt market move. The potential of firm buying support in outside markets could quickly cause moderate short-covering to move back into the cattle complex through morning Monday, but this support could be slow to develop. Monday slaughter is expected at 121,000 head.