DTN Early Word Opening Livestock 03/06 06:31

DTN Early Word Opening Livestock 03/06 06:31 Cattle Futures Struggle Following Cash Market Weakness Strong pressure across the stock market and most outside commodity trade has led to additional underlying pressure in cattle trade at the end of the week. Traders are attempting to hold support levels seen last week, but continued market pressure makes this uncertain. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Lower Live Equiv $137.45 -0.38* Hogs: Steady Futures: Mixed Lean Equiv $ 71.92 +1.30** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Following another round of steady-to-lower cash cattle trade Thursday, it appears that the tone of the market may have been set, although some additional trade is likely to trickle into the market through the day Friday. Cash trade in the South remained steady with earlier trade at $113 per cwt. But this is still $2 per cwt lower than last week. Dressed trade in the North developed at $180 to $182 per cwt Thursday. This is generally $4 to $6 per cwt lower than last week's price levels. Although weakness continues in the market through the end of the week, it is uncertain if feeders will allow cattle to leave lots at even lower prices, or will hold out as they hope for price support next week. The fact that spot futures prices have bounced higher and lower within a $3 per cwt price range over the last week creates hope that the next round of buyer support is just around the corner. Futures trade is called generally lower as renewed pressure is expected to redevelop in outside markets. Continued weakness in Dow Jones futures trade in premarket trade is likely to add to the near 1,000 point loss on Thursday in the Dow Jones index. Once again, movement in live cattle and feeder cattle futures trade has little to do with overall cattle market value or beef prices, but the general tone of outside markets. This is making traders unwilling to move back into the complex. Given triple-digit losses in nearby live cattle futures and most feeder cattle futures Thursday, the focus is on sustaining long-term price support set last week. If support holds through the end of the session, then potential market gains are likely early next week. But if support levels fail, additional liquidation is likely to sweep through the complex. Friday slaughter is expected near 120,000 head.