DTN Early Word Opening Livestock 07/30 05:50

DTN Early Word Opening Livestock 07/30 05:50 Early Market Weakness Likely Sharp losses on Monday are expected to spark increased selling pressure early in Tuesday's session. This may allow for further erosion of lean hog trade during morning activity. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $137.22 +0.65* Hogs: $2 Higher Futures: Lower Lean Equiv: $ 88.96 -0.34** * 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 muted through most of the morning with bids and asking prices still likely to be hard to pin down at this point of the week. Given the light trade last week, overall offerings are generally larger but is not likely to cause packers to become overly aggressive, at least early in the week. Pressure in futures trade Monday and upcoming end-of-the-month positioning is expected to create additional hesitancy on both sides to step into the market on Tuesday. Although midweek trade is still a possibility, it is likely that trade will be pushed off until sometime Thursday or Friday. This could allow for another round of wide gaps between asking prices and bids once both sides actually step into the market during the week. Futures trade is expected to remain weak although a combination of follow-through pressure and short-covering is likely to develop Tuesday. The tone of the live cattle trade remains firm as traders focus on nearby contracts near short-term resistance levels, helping to rekindle the bullish overall tone of the market through the end of the month.