DTN Early Word Opening Livestock 08/05 05:53

DTN Early Word Opening Livestock 08/05 05:53 Weakness Likely Early Monday Continued follow-through pressure is likely as traders return to the complex following widespread liquidation last week. Attempts to cover short positions will be countered with underlying market pressure still developing across livestock trade. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $138.18 +0.36* Hogs: Lower Futures: Lower Lean Equiv: $ 91.50 -1.21** * 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 is going back to the drawing board following light trade, which steadily trickled into the market during the last half of the week last week. Monday's activity is expected to be limited to showlist distribution and inventory taking with mixed direction expected in early week futures trade as well as underlying outside market direction. Futures are expected to remain weak following the triple-digit losses Friday and potential follow-through liquidation in all cattle trade. Despite the firm pullback in prices the last two weeks, live cattle and feeder cattle trade still remain in the top half of the trading range, which could further entrench a sideways range and keep any technical market shifts limited. Outside market direction will likely play a significant role in feeder cattle trade through the first half of the week as traders focus on production costs associated with feed prices, as well as overall economic direction through the last half of the year.