DTN Early Word Opening Livestock 12/16 06:46

DTN Early Word Opening Livestock 12/16 06:46 Confirmation of Friday's Rally Sought It is uncertain how much spillover momentum will develop Monday morning following aggressive triple-digit gains Friday. Although underlying support is still expected, traders have had the weekend to ruminate on Friday's trade actions, which could allow morning market uncertainty. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $142.37 +0.69* Hogs: Steady to Higher Futures: Mixed Lean Equiv $ 86.80 +0.17** * 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 ended the week generally steady with trade in the South developing mostly Thursday at $119, whole Northern trade held out until Friday afternoon with most trade at $190 per cwt, generally steady with the previous week. Cash markets are expected to remain sluggish Monday with asking prices and bids likely undeveloped until near midweek. This is the last full trading week of the year, and with the holiday lull ahead of us, it is likely that trade may be pushed to the end of the week once again. Futures are expected mixed. The strong move Friday sparked a technical bullish signal in the cattle complex. Live cattle futures closed at $127.55 per cwt, setting contracts highs as well as breaking through short-term resistance levels and trading at the highest level since April. This move higher accounts for a $21 per cwt rally since September lows, and the potential for increased underlying support going into early 2020 when cattle numbers are expected to show increased tightness. But the moves through the end of the year could be uncertain given the expected lack of volume surrounding the holidays. Monday slaughter runs are expected at 121,000 head.