DTN Early Word Opening Livestock 11/07 06:21

DTN Early Word Opening Livestock 11/07 06:21 Growing Uncertainty Surrounds China Pork Demand Sharp up and down price swings in lean hog futures through the week continue- to create short- and long-term uncertainty on the direction of the market and potential long-term support. Cattle futures are focusing on regaining solid footing following midweek losses. By Rick Kment DTN Livestock Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv: $151.79 +0.85* Hogs: Lower Futures: Mixed Lean Equiv: $ 85.79 +1.44** * 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 Thursday morning with both sides looking for additional direction. Recent support in beef values and extremely attractive packer margins continue to push the limit on current cattle. Even though supply tightness is expected over the next couple of months, packers have great incentive to push capacity levels in order to take advantage of current margins. This should improve bids over the next couple of days. Asking prices are expected to redevelop at $117 live in the South and $185 and higher through the North. Futures trade is mixed following a pullback in all livestock trade at midweek. It is too early to tell if this shift lower will turn into a full blown market correction, which has been brewing, or if traders will be able to hold prices near the top end of the trading range, as they look for further support through the end of the week. Currently, it appears holding December contracts above $120 per cwt may remain a challenge given the seasonal pressure typically seen through the end of the year. Thursday slaughter runs are expected at 118,000 head.