DTN Early Word Opening Livestock 01/02 06:53

DTN Early Word Opening Livestock 01/02 06:53 A New Year, Hoping For New Direction Although the calendar has changed, market activity is expected to look very similar to the holiday-traded activity over the last two weeks. Sluggish overall volume and limited new market direction should keep prices contained in a narrowly mixed range during morning trade. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $138.93 -0.91* Hogs: Steady Futures: Mixed Lean Equiv $77.90 - 1.73** * 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 was no surprise that cash market activity was quiet the first couple days of the week with both sides pushing cash market decisions off until after the holiday break, and into 2020. But now that we have arrived in the new year, it is time for packers and feedlot managers to buckle down and get to business. Although limited direction shift is likely to be seen in cash cattle trade through the end of the week, the first trade of the year has the potential to set the tone for the rest of the month. Packers already have moderate amounts of cattle sourced for the next couple of weeks with contract deliveries expected as well as a portion of December negotiated trade scheduled for delivery through the first two full weeks of January. But even though overall trade volume totals may not be huge, the tone of the market is expected to remain steady to higher as feedlot managers have shown aggressive asking prices before the holiday. Packer bids are likely to slowly develop through the day Thursday, although active trade may not be seen until sometime Friday. Futures trade is expected mixed in a narrow range. With holiday schedules still limiting overall trader interest, limited overall direction is likely, although the strong underlying tone seen in the market is likely to continue as traders focus on expected tighter market ready cattle supplies through the upcoming months. Thursday slaughter runs are expected near 121,000 head.