DTN Early Word Opening Livestock 10/24 06:21

DTN Early Word Opening Livestock 10/24 06:21 Lean Hog Trade Waiting for Morning Export Sales Report Mixed trade is expected early Thursday as cattle and hog futures have continued to move in opposite directions based on shifting fundamental perspectives during late October. By Rick Kment DTN Livestock Analyst Cattle: Steady to Higher Futures: Higher Live Equiv: $143.42 +1.01* Hogs: Lower Futures: Mixed Lean Equiv: $ 79.81 -1.06** * 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 has been generally limited at this point with a few deals reported on a live basis in Nebraska and Kansas at $109 per cwt. This is generally $1 lower in the North and $1 higher in the South. With the Cargill plant back online this week, it is likely that a light-to-moderate boost will be seen in Southern Live cash cattle prices based more on taking out the discount put into the market last week than a strong underlying shift higher. The midweek futures rally and continued support in beef values during the week would suggest that feeders would become even more reluctant to accept anything steady to lower, but the increased offerings of cattle on showlists this week may limit packer interest. Follow-through buyer support is likely to redevelop as traders attempt to expand the strong market shift on Wednesday. With December futures posting technical support midweek, and moving above summer highs of $114.35 in December contracts, traders are likely to test the upside range the next couple of days. December futures are now trading at the highest price levels since May 1, with prices nearly $2.50 per cwt higher than year-ago levels. The potential to hold and expand these gains through the end of the week will likely set market direction through the end of October. Thursday slaughter runs are expected at 117,000 head.