DTN Early Word Opening Livestock 06/03 06:43

DTN Early Word Opening Livestock 06/03 06:43 Mixed Trade Expected Monday Traders are expected to enter the market with mixed objectives Monday. A combination of follow-through pressure is expected along with early-month short-covering. This may leave markets shifting in a moderate-to-wide trade range most of the morning. By Rick Kment DTN Analyst Cattle: Steady Lower Futures: Mixed Live Equiv: $144.96 -0.44* Hogs: Steady to $2 Lower Futures: Mixed Lean Equiv: $ 87.72 +0.86** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Strong underlying pressure at the end of last week has caused underlying concern of follow-through pressure in early June. Last week, nearby live cattle futures broke through support levels, setting contract lows. This is expected to bring follow-through liquidation as August futures continue to look for support, although underlying softness in beef values the last couple of weeks is combining fundamental pressure with technical softness in the entire complex. Feeder cattle trade is leading the entire market lower after August futures took advantage of expanded trading limits Friday, holding a $5.10 per cwt loss at the closing bell. This accounts for a $9.50 per cwt loss in the last three sessions, significantly weakening the entire market tone. Concerns of recent gains in grain prices due to wet weather and delayed planting will cause concerns about feed supply availability for the next year. Even though the tone of the market remains weak, there will be an attempt to cover short positions on the first trading day of June, leaving the potential for buyer support to develop early Monday. Cash cattle trade is expected to remain undeveloped, with showlist distribution likely to be the main focus as bids and asking prices are not expected until later in the week.