DTN Early Word Opening Livestock 02/06 06:17

DTN Early Word Opening Livestock 02/06 06:17 Midweek Losses Bring Additional Trade Concerns Active pressure redeveloped Wednesday, sparking additional concerns of further liquidation in cattle and hog trade in the upcoming days. Despite outside market support, livestock markets have continued to struggle during early February. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Lower Live Equiv $141.19 +0.03* Hogs: Steady Futures: Mixed Lean Equiv $ 72.99 -2.83** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Cash cattle activity is once again being pushed to the tail end of the week with both sides reluctant to step back into the market given the pressure in futures trade and lackluster support available in wholesale beef values. Asking prices are expected to redevelop Thursday morning at $124 live in the South and $198 and higher dressed in the North. It is uncertain if the few packer bids at $120 live in the North will redevelop early Thursday morning as packers assess overall market conditions. The direction of futures trade early Thursday morning may have a significant impact on the direction and intensity of bids early Thursday. At this point, it would not be surprising if active sales were delayed until Friday given the underlying lack of support through the complex. Futures trade is expected mixed to mostly lower as spillover pressure is likely to redevelop in the complex. Losses Wednesday moved back to October lows, as concerns of overall demand support and potential cash market weakness quickly moved through short-term support set late last week. With early-week gains unable to hold, technical selling pressure once again redeveloped. This could create additional market shifts lower through the near future as traders look for long-term direction across the complex. Thursday slaughter runs are expected near 122,000 head.