DTN Early Word Opening Livestock 10/02 06:20

DTN Early Word Opening Livestock 10/02 06:20 Traders Search for Stability at Midweek Early week sharp price shifts in lean hog futures sparked additional uncertainty as traders look for the potential to stabilize the market. Grain market direction will continue to be a major factor in feeder cattle interest Wednesday morning. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $136.53 +0.13* Hogs: Higher Futures: Mixed Lean Equiv: $ 80.03 +1.56** * 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 remains at a standstill with the few cattle traded in Iowa Tuesday not enough to establish a good market test. Sharp increases in asking prices of $108 live in the South and $175 dressed in the North make it very clear that feedlot managers are looking for and expecting another strong shift higher following gains over the previous two weeks. The tone of the market appears to have changed slightly, given the strong pullback in feeder cattle and lean hog trade, while live cattle contracts have shown little life over the last couple of days. The "deer in the headlights look" may be a good way to describe the movements in live cattle futures during the week as traders continue to wait for additional direction from either outside markets or overall fundamental shifts. There is potential to bring some renewed stability to feeder cattle futures as early morning corn trade has broken away from the firm follow-through gains. This will likely bring a combination of selling pressure and short-covering through the morning hours.