DTN Before The Bell Livestock

Mixed Trade Keeps Markets Unsettled

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Nick Scalise)

GENERAL COMMENTS:

Sharp losses midweek has left markets unsettled to say the least. The back and forth triple-digit price swings over the last few days is leaving the market generally directionless, although a weaker market tone is still seen. Corn prices are lower in light trade. Stock markets are mixed. Dow Jones is 128 points lower with NASDAQ up 34 points.

LIVE CATTLE:

Open: Mixed. June futures have posted light to moderate support, while the rest of the market remains weaker. Traders seem to be taking a break from the aggressive losses as traders look for increased movement in the rest of the livestock trade. Cash cattle interest is quiet Thursday morning following moderate trade. This could add some uncertainty through the rest of the week given the recent pullback in beef values. Asking prices are holding at $120 live in the South and $185 and higher dressed in the North. Open interest added 2,717 positions (263,325). June contracts lost 13,175 positions (58,762) and August contracts added 11,407 positions (99,190). DTN projected slaughter for Thursday is 91,000 head.

FEEDER CATTLE:

Open: Mixed. Limited activity is seen in feeder cattle trade through most of the morning Thursday. The overall lack of support through the live cattle complex continues to add increased concerns about bringing additional buyers into the market over the near future. Although deferred futures are trending lower, the limited support in May futures is limiting overall pressure. Cash index for 5/11 is $123.11, up 0.51. Open interest Wednesday fell 428 positions (29,644).

LEAN HOGS:

Open: $1 to $2 Lower. Lack of overall support is seen through the lean hog complex with increased overall pressure in most livestock trade. The overall lack of aggressive movement in pork sales to China or to all export markets is creating additional uncertainty about the ability to regain buyer support across the complex. Cash hog trade is called $1 lower to 50 cents higher. Most bids are steady to 50 cents lower. Open interest added 2,669 positions (207,163). June fell 3,336 positions (38,623) and July added 4,660 positions (53,614). Cash lean index for 5/12 is $67.89, up 2.17. DTN projected slaughter for Thursday is 389,000 head. Saturday runs are expected near 239,000 head.

Rick Kment can be reached at rick.kment@dtn.com

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Rick Kment