DTN Early Word Opening Livestock 03/28 05:53

DTN Early Word Opening Livestock 03/28 05:53 Cattle Futures Focus on Recent Losses Look for a defensive open on Thursday based on strong pressure midweek in outside markets and livestock trade. Increased focus on outside market direction in early trade will likely set the tone for the rest of the week. By Rick Kment DTN Analyst Cattle: $2 Lower Futures: Lower Live Equiv: $151.33 +0.37* Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 86.13 +0.56** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Active pressure midweek is opening the door for additional technical pressure for the last two trading sessions of March. Even though most contracts still remain above the short-term support levels from early March, the break below $126.65 in April contracts sparked a market reversal and increased liquidation. Trade is expected to remain sluggish early Thursday morning, although the overall tone of the complex continues to weaken following the early development of cash cattle trade at lower money. Traders are watching the overall outside market direction, which had a significant impact on midweek price levels, for follow-through pressure in the coming days and weeks. Cash cattle trade started to develop at midday on Wednesday, surprising most in the market how quickly things developed as traders tried to cover basis levels. Prices were $126 live and $206 dressed, although additional trade is possible through the end of the week. But at this point, prices are likely to already be set.