DTN Early Word Opening Livestock 11/26 06:31

DTN Early Word Opening Livestock 11/26 06:31 Traders Focus Turns to Winter Storms and Holiday Trade Apathy The upcoming Thanksgiving holiday may create unusual market direction through livestock trade as limited volume has a way of causing markets to move in an unusual and generally unpredicted pattern. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $150.73 +0.58* Hogs: Lower Futures: Mixed Lean Equiv $88.93 +0.94** * 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 markets remain at a standstill Tuesday morning. Any other week, it would be expected that packer bids and asking prices are undeveloped on Tuesday as both sides seem content to wait until midweek or later before stepping into the complex. But with Thanksgiving holiday on Thursday and both sides desiring to accomplish trade before the break and not have to return Friday in order to fulfill procurement lists, interest from both sides is expected to quickly develop over the next two days. The firmness in futures trade Monday helped to create a sense of stability through the complex following last week's market tumble, especially in feeder cattle trade. But the focus is now moving toward the limited trade volume through the rest of the week and potential winter storms developing in much of the upper Midwest. The change in weather conditions is not only expected to impact overall movement of cattle, but daily gains will likely be significantly hindered due to snow and cold weather conditions. The firmness in wholesale beef values, helped to create some sense of relief following the pullback in prices through the end of last week. Traders are focusing on the ability to continue strong underling support in wholesale beef values and generally strong domestic demand through the end of the year. Although tighter overall supplies are still expected through early 2020, the volatility associated with holiday trade could add increased and potential wide market swings over the next couple of months. Tuesday slaughter runs are expected at 118,000 head.