DTN Early Word Opening Livestock 07/01 06:17

DTN Early Word Opening Livestock 07/01 06:17 Hog Market Support Expected Following Trade Talks Limited-to-moderate support is expected early Monday as traders step into the complex following the announcement of a "cease fire" in the trade war between the U.S. and China. This is helping to rekindle hope that progress can develop in the coming weeks. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $140.79 -0.10* Hogs: Steady to $2 Lower Futures: Higher Lean Equiv: $ 78.79 -0.39** * 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 business is expected to remain sluggish through most of the day as packers and feeders start the process once again. The short holiday week will likely disrupt the overall routine during the week with both sides desiring to wrap business up by late Wednesday in order to enjoy the long holiday weekend. Light-to-moderate trade developed late last week with trade at $109 in the South, which is steady to $1 per cwt lower than the previous week, and prices steady to $2 per cwt lower across the North at $178 to $180 per cwt. The overall lack of price support is not unexpected given the overall lackluster interest by packers to aggressively source cattle at the end of June, and the expectation that overall buying appetites will remain subdued during the first week of July also. Futures is expected mixed in light to moderate trade. Firm pressure in nearby live cattle futures at the end of the month was offset by firm late-week interest in feeder cattle trade. Traders were not only adjusting month-end positions but were wrapping up second quarter activity, which led to limited market shifts Friday. Feeder cattle trade is expected to focus on grain market direction as the wide market swings from Friday will likely increase volatility during early July.