DTN Early Word Opening Livestock 10/23 06:55

DTN Early Word Opening Livestock 10/23 06:55 Hog Futures Search for Stability Initial trade is expected to remain sluggish in all livestock trade Wednesday morning, but increased emphasis is moving back to the Tuesday shift lower in hog futures and focus on direction through the end of the week. By Rick Kment DTN Livestock Analyst Cattle: Steady Futures: Mixed Live Equiv: $142.41 +1.35* Hogs: Lower Futures: Lower Lean Equiv: $ 80.87 -2.43** * 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 quiet going into midweek with bids and asking prices still not too active. It is expected that live asking prices in the South will remain at $110 and higher, while more Northern dressed asking prices will be seen through the morning. At this point, it is uncertain if packers will show much interest this early in the week or wait until the tail end of the week. There is the potential that active trade will be delayed until after the Cattle on Feed report on Friday afternoon. Futures trade is expected mixed with limited market direction likely through morning trade following the inability to retest resistance levels in either feeder cattle or live cattle trade early in the week. The monthly Cold Storage report released Tuesday afternoon posted total beef stocks falling 1% from month-ago levels, while supplies have tumbled 8% from last year's levels. This indicates that strong clearance is continuing through the end of the third quarter. Wednesday slaughter runs are expected at 117,000 head.