DTN Early Word Opening Livestock 02/24 06:35

DTN Early Word Opening Livestock 02/24 06:35 Limited Trade Direction Expected Early Monday Traders are heading back to work, with the potential of adding stability back into the market following last week's turn lower in live cattle trade. Lighter-than-expected cattle placements in the Cattle on Feed report will create limited optimism concerning long-term supplies. By Rick Kment DTN Analyst Cattle: Steady Futures: Mixed Live Equiv $137.28 +0.07* Hogs: Higher Futures: Mixed Lean Equiv $ 69.95 +0.59** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Initial trade is expected to remain sluggish through most cattle markets with cash market interest on the back burner once again with bids and asking prices not expected until near midweek. Showlist distribution and inventory taking is likely to be the main focus Monday morning with feeders attempting to maintain the momentum of last week's higher prices in live cattle trade. Expected larger supply levels through much of the spring and summer months is creating some additional caution with packers attempting to curb cash spending levels due to weaker margins and the lack of significant price improvements in beef values the last couple of weeks. Asking prices are expected to remain elevated when cattle are priced in the next couple of days, but the gap between asking prices and initial bids is likely to remain wide, with potential active trade not seen until the last half of the week. Futures are expected mixed following the moderate-to-strong pressure last week in spot April live cattle trade. April live cattle futures fell $2.08 per cwt from the previous Friday, taking out most of the early February rally. Although April futures are still holding above support levels, and February lows at $117.17 per cwt, the concern that follow-through pressure early in the week could further weaken the entire complex. A move below support levels through the end of the month would likely stimulate additional active liquidation despite the direction of short-term fundamentals. Lighter-than-expected placements during the month of January remain the bright spot of the market, indicating that tighter supplies of feeder cattle to place into feedlots remain the main focus, helping to build long-term support back into the overly sold cattle complex. Monday slaughter is expected near 121,000 head.