DTN Early Word Opening Livestock 10/08 06:16

DTN Early Word Opening Livestock 10/08 06:16 Hog Market Weakness Sets Early Tone for the Week Limit losses in nearby lean hog futures Monday sets the tone for additional underlying market weakness following technical weakness and growing concerns surrounding positive results in the upcoming trade talks with China. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $135.56 -0.62* Hogs: Steady Futures: Mixed Lean Equiv: $ 82.48 +2.58** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Sluggish cattle trade Monday left prices mixed to mostly lower as traders come off of the "cash market highs" from late last week. The underlying support in cash cattle trade has helped to spark underlying buyer support in nearby live cattle futures, pushing December futures above $111 per cwt with a 42-cent gain. Limited losses through most 2020 contracts continues to offset the recent support expected in deferred markets based on the expectation that overall market-ready cattle supplies should slow down once we get to the new year. The overall pressure was felt in feeder cattle given the lack of underlying support in the entire complex. Early trade Tuesday is expected to remain mixed with traders still defending recent underlying support in nearby contracts, but overall market momentum in the complex is starting to erode. Given the recent strong run in live cattle futures without a major correction, it is likely that position-squaring will develop over the near future. The continued pressure in beef values the last couple of weeks continues to limit the upside market movement in cash and futures trade, despite the continued focus to keep cattle slaughter numbers elevated. Cash cattle trade is expected to remain quiet through the Tuesday session with limited interest from packers likely, although asking prices are expected to take form the next couple of days. It is expected that most trade will once again be pushed off until late in the week, although a few bids may start to develop by Wednesday. Tuesday slaughter runs are expected at 117,000 head.