DTN Early Word Opening Livestock 12/11 05:51
Follow-Through Cattle Market Weakness Likely
Light to moderate pressure may redevelop in cattle futures Monday morning,
although price levels may focus on choppy trade during the early hours based on
a combination of short-covering and follow-through liquidation activity.
By Rick Kment
Cattle: Steady Futures: Lower Live Equiv $135.30 +0.83*
Hogs: Mixed Futures: Higher Lean Equiv $ 88.97 +0.55**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Follow-through pressure early Monday morning is expected to redevelop as
traders continue to assess the overall long-term direction of beef supplies and
end-of-year demand potential. The sharp losses that redeveloped late last week
in feeder cattle markets have caused traders to look for additional long-term
direction and renewed buyer activity. Some short-covering could develop early
in the session in both live cattle and feeder cattle markets. But the recent
pressure may not be enough to establish strong support levels through the first
half of the week. Cash cattle markets are expected to remain sluggish with
little to no direction developing Monday as showlist distribution and
inventory-taking are the main order of business.
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