DTN Early Word Opening Livestock 02/07 05:53

DTN Early Word Opening Livestock 02/07 05:53 Firm Pressure Likely to Redevelop The weaker undertone seen through the livestock complex over the last two trading sessions is expected to limit any short-term buyer support that tries to step into the market in order to cover short positions Wednesday morning. This is likely to add even more weakness to cattle and hog futures through most of the morning. By Rick Kment DTN Analyst Cattle: Steady Futures: Steady to $1 Lower Live Equiv $140.17 -0.74* Hogs: Mixed Futures: $1 Lower Lean Equiv $ 83.31 -1.89** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Early trade across the live cattle futures is expected to focus on a combination of follow-through selling pressure and light short-covering after the two-day market pullback early in the week. This is likely to create moderate to firm pressure in nearby contracts, although the focus on the upcoming cash cattle trade as well as potential stability in the rest of beef market fundamentals through the week could limit additional pressure midweek. Cash cattle markets remain undeveloped going into Wednesday morning, but the sluggish packer interest early in the week is likely to improve moderately, although active trade may not be seen until sometime Thursday or Friday. The development of the Fed Cattle Exchange Auction may bring additional cash market news, but given the limited activity over the last few weeks, it is not expected to be a market driver.