DTN Early Word Opening Livestock 06/07 06:42

DTN Early Word Opening Livestock 06/07 06:42 Cattle Weakness Developed Tuesday, Leading to Renewed Market Uncertainty Midweek Sharp losses developed across cattle trade late Tuesday. This is expected to create additional bearishness through the entire complex early Wednesday morning. Although the underlying tone of the market remains weak, the ability for short-covering will redevelop during the session. By Rick Kment DTN Analyst Cattle: Steady-$2 HR Futures: Mixed Live Equiv $161.51 + 0.56* Hogs: Steady-$1 HR Futures: Mixed Lean Equiv $ 95.60 - 0.93** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Packers and feedlot managers will go into midweek with very little direction as only a few bids have surfaced so far. These bids show very little evidence of market interest at this point of the week. Asking prices are not readily available at this point either, leaving most of the heavy lifting to be done in the second half of the week. Sharp losses seen late Tuesday in futures trade will likely create a significant shift in market tone over the entire cattle complex through the rest of the week. Feeder cattle futures will have expanded trading limits following the limit losses Tuesday. Live cattle markets posted strong losses, and are likely to shift lower in early trade, although the volatility over the last couple of sessions may quickly bring buyers back into the market.