DTN Early Word Opening Livestock 12/20 06:43

DTN Early Word Opening Livestock 12/20 06:43 Cattle Traders Look for Stability Friday Morning Limited activity is expected Friday morning as traders continue to adjust to firming cash cattle prices while also adjust for the upcoming Cattle on Feed report Friday afternoon. Firm follow-through hog buying is likely during early trade. By Rick Kment DTN Analyst Cattle: Steady to Higher Futures: Mixed Live Equiv $138.80 -0.33* Hogs: Steady Futures: Mixed Lean Equiv $ 81.63 -0.58** * 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 started to develop Thursday with prices generally $1 to $2 per cwt higher than last week. Prices in the South are listed at mostly $120 per cwt live, up $1, while Northern dressed trade is mostly $192 per cwt, a $2 per cwt bounce from last week's levels. It is likely that some additional trade may develop, and quite possibly following the afternoon release of cattle on feed numbers. But unless a major disruption is seen in futures trade or there is an unexpected shift in the Cattle on Feed report, the tone of the cash market is likely to have already been set by Thursday's trade. The upcoming holiday weeks will limit packer activity through the end of the year. Futures trade is expected to be mixed as traders not only focus on what could be sluggish trade volume through the end of the year, but late adjustments to the afternoon Cattle on Feed report is likely to cause some light-to-moderate morning price adjustments. No major shifts are expected in the afternoon Cattle on Feed report with early estimates for placements increasing 0.9% over last year, while total on-feed numbers are expected 1.9% higher. If reports come in near expected levels, the immediate impact on the market may be limited, although it does continue to point to growing numbers of market-ready cattle through the middle of 2020, which could limit long-term price support. Friday slaughter runs are expected at 118,000 head.