DTN Early Word Opening Livestock 05/04 07:03

DTN Early Word Opening Livestock 05/04 07:03 Follow-Through Market Firmness Sought in Early Trade Livestock traders are expected to quickly balance the potential for follow-through buyer support from last week as several packing plants are expected to partially reopen, giving hope for a return to more normal conditions. Sharp outside market pressure in overnight trade could quickly limit early support. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $239.61 +5.72* Hogs: Mixed Futures: Higher Lean Equiv $111.64 +5.93** * 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 likely to remain quiet early Monday following light-to-moderate activity again last week. There will be increased focus on the amount of cattle actually traded late last week when mandatory reports are released through the morning. This is expected to leave showlists large once again as the reduced packing availability levels over the last several levels has continued to back up cattle in feedlots. With the expectation that increased production, from plants is likely to be the next couple of days, this could offset some of the pressure. But the backlog of market-ready cattle will still cause the industry to dig out of the current situation for an extended period of time. There is uncertainty as to what production schedules will look like if plants are up and running, because of safety measures put in place to limit the spread of the virus might limit overall buying early in the week. Bids and asking prices are not likely to develop until midweek or later, but the continued wide gap between wholesale beef values and cash markets should help to spark some additional interest. It is still unclear if and how much of the recent gains in wholesale price levels can, or will be passed through the retail levels at this time, which could create some major demand shifts in the upcoming days and weeks. Futures trade is called mixed following the strong upward shift last week with a combination of position taking and follow-through buying developing across the complex. With traders quickly moving away from long-term lows through late April, the potential to see further moves higher may be limited by bearishness in outside markets during overnight trade Monday morning. Monday slaughter is expected at 96,000 head.