DTN Early Word Opening Livestock 06/05 06:45

DTN Early Word Opening Livestock 06/05 06:45 Follow-Through Cattle Gains Expected Light-to-moderate follow-through buying is expected to redevelop through live and feeder cattle trade early Wednesday morning in order to confirm the Tuesday market rally. Mixed hog futures trade remains likely as traders continue to focus on overall long-term market uncertainty. By Rick Kment DTN Analyst Cattle: Lower Futures: Higher Live Equiv: $144.76 +0.01* Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 86.69 -1.26** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Early-week trade has developed in most areas with live cattle trade in the North and South. There may be additional activity in the North midweek, but typically at this point in the week, trade hasn't even started. Trade in the South has been mostly at $113 per cwt, $2 per cwt lower than last week, but prices Tuesday were steady with Monday's levels. Live cattle trade in the North developed Tuesday at $114 per cwt, once again $2 per cwt lower than last week. There may be enough trade to establish a good market trend, which would set the tone for the rest of the week, despite the moves in futures trade. Dressed trade still needs to be seen in the North, which could be influenced by stronger futures trade. Bids are expected to redevelop near $183 per cwt, while asking prices are holding at $188 and higher. Follow-through buying is expected in cattle futures trade with a strong $3 to $4 per cwt rally in feeder cattle expected to provide spillover support. Given the extreme shift higher earlier in the week, moderate attempts of position-taking is likely to develop in the morning.