DTN Early Word Opening Livestock 12/23 06:44

DTN Early Word Opening Livestock 12/23 06:44 Limited Livestock Trade Expected During Christmas Week Trade Monday morning is likely to remain sluggish and will continue that way through the holiday shortened week. With Christmas landing on a Wednesday, it typically disrupts trade more than usual compared to years where the holiday is in the beginning or end of the week. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $139.08 +0.28* Hogs: Steady Futures: Mixed Lean Equiv $ 81.42 -0.21** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Following light-to-moderate trade, which developed mostly on Thursday last week, but pushed prices $1 to $2 per cwt higher, traders are not expected to be in too big of a hurry to get business done. It is likely that little interest from both sides will be seen until after Christmas. This could lead to a flurry of cash market trade on Thursday or Friday. Although it is still uncertain just how many cattle need to be purchased following packers buying ahead over the last couple of weeks and limited procurement levels the next two weeks. But Monday will still see showlist distribution and inventory taking as both sides prepare for a disjointed week ahead of the Wednesday holiday break. Futures are called mixed with limited early direction expected. Friday's Cattle on Feed report was far from shocking with increases in total cattle on feed and placements, while marketing slipped during November. The fact that cattle placements came in well above early market estimates at 105% year-ago levels compared to estimated levels of 100.9%. This is still within the expected range, but the increased amount of cattle placed in feedlots once again points to the increased availability of market-ready cattle through the second and third quarters of 2020, which remains a stark contrast to the tighter supplies expected in first quarter 2020. The fact that marketed cattle was 3% lower than last year, but right on target with expectations continues to add concern about keeping cattle numbers current, but this again is not surprising. Monday slaughter runs are expected at 120,000 head.