DTN Early Word Opening Livestock 07/26 08:38

DTN Early Word Opening Livestock 07/26 08:38 Expanded Trading Limits Available in Cattle Futures The sharp moves Monday have opened the opportunity for expanded trading limits in both live cattle and feeder cattle futures Tuesday morning. This is expected to lead to even more market volatility, although given the sharp two-day rally, there are questions as to just how much gas is left in the cattle market tank, given there is no change in fundamentals. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $134.10 -.60* Hogs: Steady to $1 LR Futures: Mixed Lean Equiv: $ 94.44 +.41** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Activity levels in the live cash-cattle traded markets are expected to remain at a standstill following typical showlist distribution through the day on Monday. The limit higher rally of $3 per cwt in nearby cattle futures is expected to spark additional buyer support from the sidelines as the morning continues. But the question of just how prices will move higher without being unchecked by a steady round of position-taking following the two-day rally is heavy on the mind of many traders. Cash markets are likely to remain dead in the water once again Tuesday as active trade will likely be delayed until the last half of the week. But the $5 to $5.40 per cwt rally in nearby contracts over the last two sessions could set a seasonal market low, allowing for additional buyer support to build through the last week of July and early August.