DTN Early Word Opening Livestock 03/12 06:27

DTN Early Word Opening Livestock 03/12 06:27 Continued Losses Expected Thursday Continued sharp losses in outside markets has livestock futures tumbling lower through the week. With coronavirus cases moving above 1,000 in the U.S. and the WHO declaring COVID-19 a pandemic, widespread losses are expected Thursday. By Rick Kment DTN Analyst Cattle: Lower Futures: Lower Live Equiv $136.41 -0.52* Hogs: Lower Futures: Lower Lean Equiv $ 73.67 +0.86** * 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 developed Wednesday surrounded by falling markets in nearly every venue. Although trade activity was light to moderate, the lower prices midweek may set the tone of the week, but continued widespread market pressure could further pressure cattle prices before relief is seen. Cash trade took place in the South at $110 per cwt, generally $3 per cwt lower than last week. Activity in the North ranged from $173 to $176 per cwt, with most trade at $175 per cwt. This is $6 per cwt lower than last week, indicating continued movement focused on the pressure in futures trade and concerns that the fears of sliding consumer demand losses are starting to develop. It is expected that additional cash market trade will develop, but prices could see further weakness if additional widespread outside market pressure develops. Livestock futures are expected to continue to shift lower after limit or near limit moves through the end of trade Wednesday. Even though live cattle and feeder cattle contracts posted limit losses in all deferred contracts, expanded trading limits are not being utilized as the two nearby contracts did not close limit lower. The market pressure in cattle trade continues to follow the direction of outside markets, and specifically the stock market, which is posting another 1,000-point loss in the Dow Jones futures trade during overnight trade. Thursday slaughter is expected near 121,000 head.