DTN Early Word Opening Livestock 07/10 06:15

DTN Early Word Opening Livestock 07/10 06:15 Firm Gains Expected Early Wednesday Follow-through buyer support is expected to redevelop in livestock trade Wednesday morning after traders broke out of the recent trading range in cattle markets Tuesday. By Rick Kment DTN Analyst Cattle: Steady Futures: Higher Live Equiv: $138.05 -1.62* Hogs: Steady to $1 Lower Futures: Mixed Lean Equiv: $ 78.59 +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: Cash cattle activity is expected to remain sluggish early Wednesday morning with bids and asking prices not expected to be clearly defined following the strong shift higher in futures trade Tuesday and general sluggish interest from packers at this point. Packer bids are expected to improve through the day, but the typical low, token bids are likely through the morning, and may improve through the day. Both sides will focus on the ability to trade cattle midweek, at least in some regions of the country, as this has become the trend over the last few weeks. But the volatility this week in futures trade and beef values may limit overall cash market activity with both sides trying to determine a long-term market direction. Futures trade is expected to be mixed to mostly higher Wednesday morning. The tone of the complex is firming following aggressive market support in feeder cattle and live cattle trade. The opportunity for position is becoming more available, but the recent technical support could spark additional short-term support during morning trade.