DTN Early Word Opening Livestock 03/20 06:35

DTN Early Word Opening Livestock 03/20 06:35 Traders Focus to Salvage a Volatile Week Following limit gains Thursday combined with active overnight buyer support is pointing to additional market support as cash and futures traders focus on the extreme surge in meat values through the week. By Rick Kment DTN Analyst Cattle: Steady to Higher Futures: Higher Live Equiv $163.36 +1.47* Hogs: Higher Futures: Higher Lean Equiv $ 83.79 +4.03** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Active cash trade earlier in the week has limited the expectation of additional active interest from either side at this point. With the monthly Cattle on Feed report released Friday afternoon, some additional buying interest may develop leading up to and following the report. But cash cattle prices bounced all over the place, hitting weekly lows early in the week, but slowly gaining market momentum based on the rally in beef values. The overall range in live trade in the South is $106 to $113 per cwt, while dressed deals in the North are listed at $168 to $180 per cwt. It is uncertain where exact overall averages will land once the dust settles through the week. The Cattle on Feed report is not expected to show significant changes in overall cattle in feedlots, although placements in February are expected to remain lower with the average market estimate nearly 8% lower than year-ago levels. Strong marketing levels are likely during the month of February, helping to keep the overall market current. Futures trade continues to be driven by overall economic uncertainty, combined with the aggressive surge in wholesale meat values over the last week. This helped to solidify limit gains Thursday, and pointing to additional follow-through support at the end of the week. Given the growing concerns of COVID-19, and how this will impact overall beef demand beyond initial buying by consumers in grocery stores around the country, could add some growing uncertainty to traders that have quickly moved back into the market. The fact that food service dining has significantly changed over the last week is likely to have a significant impact on the overall longer-term direction of the market. Friday slaughter is expected near 119,000 head.