DTN Early Word Opening Livestock 12/05 06:03

DTN Early Word Opening Livestock 12/05 06:03 Mixed Trade Expected Midweek Trade in livestock markets is expected to be squarely focused on outside market direction following the sharp losses in the stock market Tuesday. Mixed trade is expected with limited volume early in the session. By Rick Kment DTN Analyst Cattle: Steady Futures: Firm Live Equiv: $139.64 -0.16* Hogs: $1 Lower Futures: Mixed Lean Equiv: $ 75.70 +0.23** * 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 activity remains undeveloped early Wednesday morning with a few token bids in the north Tuesday unable to bring any direction to the market. Asking prices are generally undeveloped, but are expected around $118 and higher live basis and $187 dressed. Packer interest is expected to improve throughout the day, although this is not likely to spark much trade unless active movement develops in the futures trade. Bids will likely to be restated near $183, similar to where bids were Tuesday. Most of the cash trade is likely to be pushed off until later in the week, as traders focus on the long-term direction. Futures trade is expected to redevelop following aggressive market support in nearby live cattle trade and deferred feeder cattle markets late Tuesday. It is uncertain just how much follow-through buyer support will develop midweek, which could allow for the development of short-covering, especially if widespread outside market pressure develops as the trading session continues.