DTN Early Word Opening Livestock 03/24 06:34

DTN Early Word Opening Livestock 03/24 06:34 Further Future Gains Expected on Meat and Cash Support Following limit gains and strong support building in cash and meat prices in cattle and hog segments, bullish expectations are redeveloping early Tuesday morning. Firm underlying support is also developing in outside markets, supporting renewed interest through the week. By Rick Kment DTN Analyst Cattle: Higher Futures: Higher Live Equiv $167.20 +2.60* Hogs: Higher Futures: Mixed Lean Equiv $ 88.36 +3.47** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: The limited cash movement on Monday is not enough to create a good market test, but it does point to the expectation that cash cattle trade will be substantially higher when the dust settles. The continued surge higher in wholesale beef values has sparked follow-through interest in all areas of the cattle complex. Bids are expected over the next couple of days, with the expectation that a starting point will be near $120 live and $180 per cwt and higher, but with the combination of surging early week futures trade and higher beef values, feeders are expected to ratchet up asking prices through the upcoming days. Expanded trading limits will be seen in all cattle futures with live cattle limits at $4.50 per cwt while most feeder cattle limits will be $6.75 per cwt. Due to the near expiration of March feeder cattle futures, the daily trading limit will be $10 per cwt in March feeder contracts only. The ability to maintain market support through the Tuesday session and break out of the yo-yo market trend seen over the last couple of weeks will be essential in helping to establish longer-term market support. Tuesday slaughter is expected at 121,000 head.