DTN Early Word Opening Livestock 05/08 06:18

DTN Early Word Opening Livestock 05/08 06:18 Firmness in All Livestock Trade Sparks Hope for Stability Follow-through buyer support is expected to slowly and cautiously step into the oversold livestock complex early Wednesday morning. The ability to regain price support Tuesday with feeder cattle trade holding triple-digit gains is helping to stimulate renewed interest. By Rick Kment DTN Analyst Cattle: $2 to $3 Lower Futures: Higher Live Equiv: $146.58 -1.73* Hogs: Lower Futures: Mixed Lean Equiv: $ 90.64 +2.78** * 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 started to develop Tuesday, allowing for light to moderate trade through the South and limited trade through the North. Prices have fallen $2 to $3 per cwt from last week's levels, with live trade mostly $120 and dressed trade at $195 to $196 per cwt. The deviation from Friday trade the last several weeks is starting to create a more regular focus on cash trade out of the gate during the first half of the week. Although some additional trade is expected, especially in the North, the tone of the market is likely set for the week. Futures trade is expected to remain mixed to mostly higher with traders focusing on follow-through buyer interest following the stability Tuesday. The cattle complex remains oversold, and this should spark increased fundamental demand at these price levels as well as technical support with the ability to sustain and build off of long-term support levels through the live cattle and feeder cattle complex.