DTN Early Word Opening Livestock 08/02 06:10

DTN Early Word Opening Livestock 08/02 06:10 Trade War Tensions Add Additional Concerns Announced tariff increases on China imports and threatened retaliation by China is adding additional bearish market shifts early Friday morning. This could cause widespread pressure in livestock and outside markets. By Rick Kment DTN Analyst Cattle: Steady to $1 Lower Futures: Lower Live Equiv: $137.82 +0.51* Hogs: Mixed Futures: Lower Lean Equiv: $ 87.79 +0.24** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Limited cash cattle trade reported Thursday afternoon fell in line with prices earlier in the week, with markets steady to $1 per cwt weaker than week-ago levels. There is the potential for some clean-up trade to develop through the end of the week, but most negotiated trade is likely to be done for the week as both sides are expected to remain cautious about stepping into the current market volatility Friday. Cash cattle prices were generally $111 per cwt in the South and $183 dressed bid in the North. Futures trade is expected mixed to mostly lower as underlying weakness surrounding trade issues with China will create a weaker tone on the market even though beef will remain less impacted by trade relations with China than other commodities. The weakness in grain trade that is expected, should have some underlying support through the cattle complex as traders continue to focus on lower production costs as grain markets slide lower through late summer.