DTN Early Word Opening Livestock 03/27 06:28

DTN Early Word Opening Livestock 03/27 06:28 Trade Focused on Growing Pork Demand The potential support from a China trade deal could sustain hog market buyer support at the top end of the market range, which is rekindling trader interest. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $151.06 +0.28* Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 85.57 +0.87** * 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 futures activity is expected in live cattle and feeder cattle trade this week with early-week losses and short-covering opportunities unlikely in most of the complex. Live cattle futures pulled back nearly $3 per cwt from last week's highs, so it is uncertain if the wide trading range will be sustained, leaving the market in sideways pattern, or if March lows will be tested through the end of the month. More stories are surfacing about the number of cattle lost in the flooding and severe winter blizzards, but isn't creating a significant overall market impact yet. Even though these losses have a dramatic impact on local and regional areas and are devastating to producers, the fact that losses are not widespread is likely to minimize the overall impact on futures trade. Cash cattle markets remain undeveloped, although a few token packer bids may start to surface on Wednesday. It is likely that trade will be delayed until sometime Thursday or Friday.