DTN Early Word Opening Livestock 10/03 06:13

DTN Early Word Opening Livestock 10/03 06:13 Limited Early Trade Expected Thursday Initial moves Thursday morning are expected to remain sluggish as traders continue to focus on directional shifts. The ability to regain price support in cattle trade midweek is likely to spark underlying momentum through the end of the week. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $136.30 -0.23* Hogs: Steady Futures: Mixed Lean Equiv: $ 78.86 -1.17** * 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 remains generally quiet with feeders still holding onto elevated asking prices following the upward trend last week. Having packer bids midweek is impressive and points to positive market support through the end of the week. A few pens of cattle sold in the South at $105 per cwt Wednesday, although the overall amount sold is not enough to establish a market trend, the fact that these prices are higher than last week's average continues to spark positive interest in the complex. The ability for packers to gain access to market-ready cattle for upcoming demand is offsetting current pressure in wholesale beef values, although cattle numbers are not expected to significantly tighten in the near future. The underlying support moving into futures trade late Wednesday helped to create additional commercial market momentum with prices breaking above last week's highs through the end of the session. Although continuing to break through short-term resistance levels continues to be a chore, traders have their sights on early August highs near $111.50 per cwt. A move above this level would likely spark follow-through interest in the entire complex.