DTN Early Word Opening Livestock 07/03 06:07

DTN Early Word Opening Livestock 07/03 06:07 Sluggish Trade Expected Midweek Trade is expected to be light Wednesday morning with an early close and upcoming holiday limiting overall trader interest. Mixed trade is expected with little market direction likely through the end of the week. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $141.21 +0.37* Hogs: Steady to $2 Lower Futures: Mixed Lean Equiv $ 78.16 -0.07** * 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 is expected to improve through the day with both sides desiring to trade cattle before leaving for the holiday break Thursday. But given the stability in futures trade and recent firmness in boxed beef values, feeders are likely to hold steady to asking prices. Bids are likely to redevelop in the same range as Tuesday around $107 live in the South and $178 dressed in the North. With asking prices significantly higher than these offers, it is unlikely any interest will be shown at these levels, but it could get the ball rolling with steady-to-firm weekly price levels a strong possibility by the end of the week. Futures trade is expected to be mixed and limited as many traders have already exited the market. Markets will close early Wednesday and will remain closed until Friday morning in observance of Independence Day. The feeder cattle tone continues to remain firm, but limited late-week volume may allow for a moderate-to-strong market correction to develop. The recent unrestricted rally has moved prices $6.50 per cwt higher in the last week. Although it is likely that renewed support will continue to develop, pressure through the end of the week would not be surprising as traders square positions.