DTN Early Word Opening Livestock 12/18 08:29

DTN Early Word Opening Livestock 12/18 08:29 Limited Morning Activity Likely Keeps Prices Mixed Following limited end-of-day movement in most livestock trade Tuesday, traders are expected to return with limited direction seen through the morning. Traders look for increased movement in cash markets, but the upcoming holiday lull may be starting to affect overall participation. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $140.83 -2.18* Hogs: Steady Futures: Mixed Lean Equiv $ 83.73 -0.75** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: It appears that cash cattle trade may be gearing up for a generally ho-hum type of week with the overall tone of the market not expected to change significantly from previous weeks. The fact that packers are gearing up for lower production the next two holiday weeks will affect the amount of cattle that are needed to be purchased. At this point, most packers are not willing to aggressively source cattle for early January in the negotiated market given the current structure of the complex. Asking prices are expected to continue to be seen at $122 live in the South and $195 dressed in the North. Bids will likely become slightly more available through the day Wednesday, although the lion's share of trade is expected to be pushed off until sometime Thursday or Friday. Futures trade is expected mixed following the inability to test last week's highs on Tuesday. The moderate to firm pullback in February and April futures was a disappointing development Tuesday, but it did very little technical damage to the complex as prices may continue to hover in a moderate to wide gap near the top end of the trading range. Tuesday slaughter runs are expected at 121,000 head.