Market News

DTN Early Word Opening Livestock 03/26 05:51

03/26/2019


DTN Early Word Opening Livestock 03/26 05:51
Cattle Trade Looking for Support

Strong early-week losses have allowed for increased uncertainty through
cattle trade as traders try to adjust to larger feedyard numbers.

By Rick Kment
DTN Analyst



Cattle: Steady Futures: Lower Live Equiv: $150.78 -0.01*
Hogs: $2 Higher Futures: Mixed Lean Equiv: $ 84.70 +2.41**

* 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 trade activity is expected to remain sluggish through most of
the week with bids and asking prices undeveloped Monday. Showlists are
generally larger with Texas the only region posting lighter offerings for the
week. Bids and asking prices may not develop until late Tuesday or Wednesday,
with trade likely to be pushed off to the end of the week. Strong price
pressure ratcheted markets back from the top edge of the trading range
following increased cattle on feed numbers. Although the increase in placements
and overall on feed numbers is not likely enough to push prices lower in
itself, the uneasiness through the entire livestock complex added to the
overall market pressure. Early trade is expected to remain under pressure,
although nearby contracts are expected to still hold short-term support levels,
allowing markets to hover in the currently wide sideways pattern in the next
couple of weeks.