DTN Early Word Opening Livestock 08/06 08:22

DTN Early Word Opening Livestock 08/06 08:22 Market Uncertainty Continues The late-day rally Monday created a sense of hope and optimism in livestock trade, but the underlying tone remains weak, as traders still face significant outside market pressure and demand uncertainty. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $138.43 +0.25* Hogs: Lower Futures: Mixed Lean Equiv: $ 92.99 +1.49** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Activity levels in cash cattle trade is expected to be generally sluggish as bids and asking prices are likely to remain unavailable through most of the morning and quite possibly most of the day. Although packers are expected to have entered the week short bought, which is a natural state for packers in most cases, they continue to buy hand to mouth in order to fill needed procurement levels despite the ability to secure additional negotiated trade the previous week before. With increased buying the last couple of weeks for delayed delivery, less emphasis is being placed on weekly trade and the pressure for active trade to develop in all areas. Futures trade is expected to open mixed to mostly higher with follow-through buyer support lingering following the bounce higher in Monday's session. The ability to establish short-term support in live cattle and feeder cattle trade through the rest of the week would be huge in sparking underlying buyer support during early August. Outside market direction is expected to be the main focus through most of the week as the growing concerns surrounding trade with China and the latest tariff announcements will continue to spark uncertainty through the complex.