DTN Early Word Opening Livestock 06/04 06:46

DTN Early Word Opening Livestock 06/04 06:46 Livestock Traders Search for Support Activity early Tuesday will point to potential support levels in cattle and hog trade as mixed price levels are expected to once again develop in the opening minutes of trade. Despite the bearish underlying tone in the complex, an upside correction is likely in the near future, allowing for increased market swings this week. By Rick Kment DTN Analyst Cattle: Lower Futures: Mixed Live Equiv: $144.75 -0.21* Hogs: Steady to $2 Lower Futures: Mixed Lean Equiv: $ 89.95 +2.23** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle trade is expected to show limited movement Tuesday, although light trade in Kansas on Monday accelerated the timeline once again in the South. Cattle that were traded Monday were sold for $113 per cwt. This is $2 per cwt less than last week levels, and it ties to the market pressure in futures trade recently. More bids are expected in the next couple of days, although it is uncertain at this point if feeders will move into the market before the end of the week, or if the initial early trade will stall the process now that the ice has been broken in cash market activity. Futures trade is expected mixed Tuesday morning with traders focusing on continued underlying pressure as August futures fell below $103 per cwt Monday. Outside market direction is likely to spark some additional market shifts and volatility during early trade. But the direction of initial market moves is not likely to be the dominant direction of market trade through the rest of the session.