DTN Early Word Opening Livestock 02/07 06:44

DTN Early Word Opening Livestock 02/07 06:44 Hog Market Attempts to Continue Rally Limit gains in most lean hog futures Thursday signaled a turnaround in lean hog trade Thursday. Market momentum will be closely watched early Friday morning. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Mixed Live Equiv $140.77 -0.42* Hogs: Steady Futures: Higher Lean Equiv $ 70.21 +0.05** * 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 are now heading into the home stretch of the weekly sales race with little indication of where markets will end up given the overall lack of activity the last couple of days. It is expected that packers will become more active as previous bids of $120 live and $192 to $193 dressed have gained little to no attention at this point. Asking prices have shifted lower from early-week levels, but are likely to redevelop Friday morning around $123 and higher live in the South and $196 and higher dressed. Light-to-moderate trade is expected to develop through the day, although feeders may be willing to pull cattle off of lists and put them on next week's levels given the recent futures market support and hope that futures market support continues to build through the month of February. Futures trade is called mixed early Friday morning. The moderate support at the end of the day Thursday is a significant improvement from early Thursday losses, but much of the buyer support appears to be spillover activity from the aggressive rebound in lean hog trade. This move higher, could indicate a change in market direction if follow-through support develops across nearby contracts early Friday morning. The ability to defend Wednesday's lows may spark renewed technical market shifts at the end of the week. Friday slaughter runs are expected near 121,000 head.