DTN Early Word Opening Livestock 01/03 06:25

DTN Early Word Opening Livestock 01/03 06:25 Cattle Trade Looks for Higher Cash Trade Friday It is going to be another late week of cash cattle trade with business still undeveloped going into Friday morning. Bids are expected to be redeveloped at steady to higher money than last week with asking prices remaining agressive. By Rick Kment DTN Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv $138.61 -0.32* Hogs: Steady Futures: Mixed Lean Equiv $78.73 +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: The first cash cattle business in 2020 is going to come down to a late week, Friday showdown with previous bids of $198 dressed basis in Nebraska being passed on Thursday and unless a major disruption develops in futures trade will be expected to redevelop Friday morning. Asking prices are holding at $125 live in the South and $200 and higher in the North on a dressed basis. The focus on the underlying fundamental support and expected tighter supplies through the next couple of months is pointing to the need for packers to remain aggressive in order to source needed plant runs. The current standoff is likely to continue through most of the day with active trade potentially not seen until sometime Friday afternoon. Futures trade is expected mixed to mostly lower. The initial surge lower as traders entered 2020, created some uncertainty through the complex which will continue leave jitters through the entire market the rest of the week. Although traders look for tighter short term supplies, which is still considered bullish for the market in general, the entire complex remains extremely ripe for a light to moderate correction over the near future. Friday slaughter runs are expected near 120,000 head.