DTN Early Word Opening Livestock 03/16 07:32

DTN Early Word Opening Livestock 03/16 07:32 Further Market Pressure Expected as COVID-19 Expands Continued virus concerns are growing and keeping the market under pressure as traders enter a new week, but little additional direction as to how far prices will move before hitting bottom. Stock market futures tumbled, erasing most of Friday's gains. By Rick Kment DTN Analyst Cattle: Steady to Lower Futures: Lower Live Equiv $138.09 +1.90* Hogs: Steady Futures: Lower Lean Equiv $ 74.70 +0.66** * 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 trade last week continued to weaken as the week progressed, but the majority of trade was early, keeping overall price averages near the top end of the range. Given the underlying bearishness in cattle futures and outside markets leading into Monday's trade, the expectation is that cash market activity will remain quiet as both sides get their bearings. There is potential for some panic selling to be done in the event that prices continue to tumble lower as some sellers may be trying to cut their losses. For the most part, bids and asking prices are not expected until later in the week with inventory-taking and showlist distribution developing Monday. Futures trade is expected lower following limit losses Friday in live cattle. Expanded trade limits are once again available for live cattle traders, which creates additional underlying concern given the uncertainty over the weekend and active pressure in overnight stock market and commodity futures. A wide price spread between cash and futures cattle prices and wholesale beef values is redeveloping as active retail buying has exploded over the last several days, leaving meat counters bare. This continues to point to growing concerns of maintaining supply chains, which focuses not only on the packing industry maintaining its capacity, but the transportation and distribution system not being halted by the recent virus concerns. Monday slaughter is expected near 121,000 head.