DTN Early Word Opening Livestock 01/06 06:31

DTN Early Word Opening Livestock 01/06 06:31 Additional Market Volatility Expected Monday Lean hog futures have access to expanded trade limits Monday morning following limit losses in February futures Friday. Concerns of further global economic implications following the situation with Iran has all traders nervous. By Rick Kment DTN Analyst Cattle: Steady Futures: Lower Live Equiv $139.35 +0.74* Hogs: Steady Futures: Lower Lean Equiv $ 79.13 +0.40** * 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 was the bright spot late last week, with prices surging $2 to $4 per cwt Friday afternoon. The focus on continued tight market-ready cattle through the next two months added increased incentive for packers to dig deep into their pockets at the end of the week in order to secure additional deliveries through the next couple of weeks. It is still uncertain just how many cattle sold at the higher price levels, although the strong cash market trend is expected to help bring some needed stability to a weakening futures trade early in the week. Monday's cash market interest is expected to be limited to showlist distribution and inventory taking as traders move past holiday schedules and into the first full week of production of 2020. Bids and asking prices are not likely until later in the week. Futures trade is expected to remain under pressure following strong late-week losses in live and feeder cattle futures. Uncertainty of how traders will react to widespread losses in commodity and stock markets Friday as it relates to the situation with Iran will add additional concern not only to commodity prices in general but to the beef complex as well. Monday slaughter runs are expected near 120,000 head.