DTN Early Word Opening Livestock 02/11 06:34

DTN Early Word Opening Livestock 02/11 06:34 Meat Demand Concerns Continue Cattle futures are searching for support after active pressure Monday. The triple-digit losses in live cattle futures are once again testing long-term support prices set in October 2018. Limited morning activity may bring additional wide market swings to the complex. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $139.38 -0.49* Hogs: Steady Futures: Mixed Lean Equiv $ 69.93 +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: Cash cattle activity remains at a standstill with bids and asking prices yet to be well established for the week. If packer activity starts to slow through the middle of February, it may add increased softness to cash cattle prices the next couple of weeks. But the reason for the slowdown is tighter supply of market-ready cattle, which gives feeders significantly more advantage to leverage the cattle they have through the upcoming weeks. Late-week trade is likely once again with both sides unlikely to give in quickly from initial positions when they do step back into the market. Futures trade is expected mixed early Tuesday morning with a combination of short-covering and follow-through selling moving back into the complex. The triple-digit losses in nearby live cattle trade was a gut punch to the market Monday as traders were unwilling or unable to step back into the complex and maintain the narrow market rally from late last week. The overall lack of new short- or long-term market direction across the complex has created limited uncertainty as traders search for price support and potential renewed buying activity through the week. Even though nearby feeder cattle futures etched out a narrow gain Monday, the triple-digit losses in summer and fall contracts cannot be overlooked as traders start focusing on larger cattle numbers expected through the second half of the year. Tuesday slaughter is expected near 121,000 head.