DTN Early Word Opening Livestock 02/10 06:32

DTN Early Word Opening Livestock 02/10 06:32 Sluggish Trade Expected Early Monday Following strong support in lean hog trade late last week, and limited stability developing in live cattle futures, trade is expected to remain generally quiet Monday morning as traders assess fundamental and technical support developing during the week. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $139.87 -0.90* Hogs: Steady Futures: Higher Lean Equiv $ 69.72 -0.49** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Limited interest is expected in cash cattle activity Monday with any activity confined to inventory taking and showlist distribution. Cash cattle trade late last week was a quick affair after finally developing midday Friday. Live trade sold at mostly $121 per cwt, falling $1 per cwt from the previous week, while dressed cattle in the North posted sales prices of $193 per cwt. This is a $2 per cwt loss from the previous week. The firm pressure the last two weeks is creating some concern that additional weakness may develop through the month of February. But feedlot managers that are still showing limited overall market-ready cattle numbers over the next few weeks are likely to show little interest in offering cattle at lower prices. It is likely that the light-to-moderate trade expected last week will indicate that some of last week's offerings will be relisted this week in the attempt for market stability in the near future. Limited direction from asking prices and bids are likely until near midweek. Futures trade is expected mixed early in the week with traders attempting to build off of the light-to-moderate momentum late last week. If traders are able to defend last week's market lows set Wednesday, limited technical support is likely to develop through the complex as traders move back into the complex and try to establish longer-term support levels. The late-week pressure in feeder cattle futures is a concern because traders have been unable to sustain the late January rally that seemed to rekindle hope. Monday's slaughter is expected near 122,000 head.