DTN Early Word Opening Livestock 03/10 06:30

DTN Early Word Opening Livestock 03/10 06:30 Livestock Recovery May Begin on Outside Market Support The "bloodlust" may be subsiding across livestock futures, as outside market gains started to develop in overnight trade. This could spark moderate buyer support as traders move back into a heavily liquidated market Tuesday morning. By Rick Kment DTN Analyst Cattle: Lower Futures: Higher Live Equiv $137.95 -0.15* Hogs: Steady Futures: Mixed Lean Equiv $ 72.80 +1.09** * 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 is expected to remain sluggish early Tuesday morning following strong futures market losses early in the week and concern that additional cash market weakness will still develop even if futures trade stabilizes. This was evident with the limited early asking prices that developed Monday. Feeders priced cattle steady to lower than last week's cash cattle markets with the expectation that limit losses in live and feeder cattle markets Monday would have a bearish impact on cash markets. The few cattle that were priced were listed at $112 to $113 live and $180 dressed. Showlists were generally mixed with lighter numbers in the South and slightly higher offerings through parts of the North. At this point, both sides appear to be in no hurry to trade cattle early in the week, which could delay any significant activity until the last half of the week. Futures trade is expected mixed to mostly higher. The strong overnight surge in outside markets has pushed stock market futures sharply higher, and buyer support in most commodity markets that traded through the night. This upward market momentum is expected to spark buyer support through most cattle contracts. The intensity of market support is still uncertain, with limit losses seen Monday, feeder cattle have access to expanded trading limits. Even though limit losses in live cattle developed in August and October futures Monday, the pullback from market limits in April and June futures will keep live cattle futures limited at $3 per cwt Tuesday. Given the volatility of the market, and oversold status over the last two weeks, hitting daily trading limits is not out of the question. Tuesday slaughter is expected near 121,000 head.