DTN Early Word Opening Livestock 07/26 05:51

DTN Early Word Opening Livestock 07/26 05:51 Continued Hog Pressure Likely Short-term weakness developed in nearby lean hog trade through the last half of the week. The recent selling may spark some additional end-of-the-week pressure in nearby hog futures. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $136.94 -0.45* Hogs: $2 Higher Futures: Lower Lean Equiv: $ 88.73 +2.45** * 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 remains undeveloped going into Friday morning with limited bids seen during the week in most areas. The late-week development of cash interest is not shocking or unusual, but the fact that overall interest has been so light this week is somewhat surprising. The trend over the last two months is that at least a portion of trade, especially in the South, traded earlier in the week. Not only has early trade not developed, but bids have been hard to find in some areas. Packers are expected to still need additional cattle, which should spark increased packer interest through the day. Asking prices are holding from early-week levels, and unlikely to shift significantly until late in the day. Live cattle futures are expected to be mixed in a narrow range once again. The underlying support in the complex continues to focus on firm market levels through the end of the year, but any upward movement in the market is expected to be limited by narrow price shifts through the end of the week.