DTN Early Word Opening Livestock 07/25 05:57

DTN Early Word Opening Livestock 07/25 05:57 Livestock Market Stability Expected Mixed trade is likely early Thursday morning with a combination of follow-through buying and position squaring developing based on recent market gains. This could leave prices hovering in a narrow trading range during initial trade. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $137.39 -0.11* Hogs: $2 Higher Futures: Mixed Lean Equiv: $ 86.28 +0.83** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Packer interest is expected to improve Thursday with additional bids developing across all areas. The initial weak bids on Wednesday at $109 live basis may be the starting point once again, although asking prices of $113 per cwt live and $186 and higher dressed are not expected to budge at this point, leaving a wide cavern between offers and asking prices. It would not be surprising if at least light-to-moderate trade developed through the second half of the day, although a portion of trade may be delayed until Friday as both sides try to assess longer-term direction in futures and wholesale beef values. Futures trade is expected mixed in a narrow trading range. The light but firm buyer support through the week has allowed renewed bullishness to develop, although traders seem reluctant to continue to push prices higher after breaking through May highs. This is causing increased focus on upcoming fall and winter beef demand, which is expected firm, but uncertain if domestic movement can push prices to the next level.