DTN Early Word Opening Livestock 08/09 06:26

DTN Early Word Opening Livestock 08/09 06:26 Continued Support Expected Additional market support is expected early Friday morning as follow-through interest is likely in lean hog and several live cattle contracts at the end of the week. Outside market direction is likely to remain pivotal in continued livestock gains. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv: $139.43 +0.06* Hogs: Lower Futures: Higher Lean Equiv: $ 93.55 +0.29** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The lion's share of cash cattle trade still needs to develop in all areas Friday. Both sides are sticking to their guns this week and with limited market development in cash cattle trade, this could set up a late-week showdown that could set the tone for cash cattle markets through the end of the month. Packers continue to try to take advantage of recent pressure in futures trade and lack of strong support in beef values through the last two weeks. Feeders on the other hand, feel that the market tide is shifting, and are unwilling to settle into the steady-to-weaker market trend seen the past few weeks. This could lead to late day trade since there is a wide gap between asking prices and expected bids Friday morning. Cattle futures are expected to remain mixed to mostly higher early Friday morning with moderate-to-firm follow-through interest trickling into what is likely to be a lightly traded market through most of the day. The potential for limited losses is developing as traders not only take advantage of position-squaring opportunities, but feeder cattle futures may be heavily influenced by grain market trade at the end of the week.