DTN Early Word Opening Livestock 11/25 06:33

DTN Early Word Opening Livestock 11/25 06:33 Feeder Cattle Weakness Brings Additional Selling Concerns Market adjustments are expected early Monday morning following Friday's USDA reports, but the underlying pressure may limit market support once the dust settles. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $150.12 -1.51* Hogs: Lower Futures: Mixed Lean Equiv $87.99 +1.67** * 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 remain subdued early Monday morning with show list distribution and inventory taking the main priority of the day. With the Thanksgiving holiday only days away, it is expected that both sides will get busy with needed sales sooner than later. Although there is the possibility that trade will be pushed off until Black Friday after Thanksgiving, it is expected that most of the needed business will be in the books by late Wednesday, meaning that bids and asking prices will likely develop earlier this week than typically seen. Futures trade is mixed with the general tone of the market week following pressure late last week. The inability to bring any sense of stability into the feeder cattle complex is creating some additional uncertainty about current price levels through the end of the month. The cattle on feed report is generally neutral as the strong increases over year-ago levels in both cattle placed and total cattle on feed is below market estimates, but showing increases none the less. This will once again put additional focus on the early direction in feeder cattle futures, which have been unable to find any sense of support over the last several days. With the abbreviated trading schedule this week, overall volume through the entire complex is likely to remain subdued, which may be what is needed in order to stimulate additional buyers to once again step back into the eroding market complex. Monday slaughter runs are expected at 118,000 head.