DTN Early Word Opening Livestock 02/12 06:30

DTN Early Word Opening Livestock 02/12 06:30 Futures Pressure Softens Cash Cattle Trade The development of cash cattle trade Tuesday with prices $1 to $2 per cwt lower than last week is adding to concerns about follow-through market weakness in the cattle complex. By Rick Kment DTN Analyst Cattle: Lower Futures: Mixed Live Equiv $139.18 -0.20* Hogs: Steady Futures: Mixed Lean Equiv $ 68.56 -1.37** * 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 interest developed Tuesday as the aggressive pressure in futures trade brought additional fears of further market losses and caused feeders to jump at early-week bids. Asking prices are expected to redevelop around $123 live in the South and $195 and higher dressed in the North. The development of light trade at $119 to $120 per cwt live basis is $1 to $2 per cwt lower. Although total sales numbers are too light to set an accurate trend, without a major shift in futures prices or beef values, it is likely that a lower market trend will continue through the rest of the week. The question still not answered, is if the limited early trade on Tuesday will be enough to hold off additional activity until the end of the week in the hopes of a market rally, or if this will spark a quick "midweek affair" as both sides pull the trigger. Futures trade posted strong triple-digit losses in all nearby contracts, pushing prices to the lowest price levels since late September in April contracts. The aggressive technical pressure in the cattle complex over the last month has taken $10 per cwt off of nearby price levels. This aggressive market liquidation is creating concerns of additional follow-through pressure in the near future. The inability to spark renewed support in wholesale beef values as futures and cash prices have eroded the past three weeks is adding even more concern about demand stability through the spring months. Wednesday slaughter is expected near 121,000 head.