DTN Before The Bell-Livestock

GENERAL COMMENTS

Early trade has posted mostly higher activity in most contracts. The long weekend has brought increased buyer support back to the complex. This may add even more volatility to the market through the rest of the week. Corn futures are fractionally higher in light trade. Stock market futures are higher, Dow Jones is 255 points higher while Nasdaq is up 66 points.

LIVE CATTLE:

Open: Steady to 50 cents higher. Firm gains are starting to be seen in the live cattle futures complex. There is increased support developing across the entire market with nearby futures leading prices higher. Light trade is expected most of the morning with some increase focus on the fundamental movements through the week. Cash cattle markets are quiet early Tuesday morning following the holiday Monday which kept futures trade closed. Although show lists were distributed in most areas, most bids are not expected to be seen until midweek. Open interest Friday added 5,156 positions (354,161). Spot February lost 6,366 positions (76,278) and April contracts gained 9,223 positions (136,379). DTN projected slaughter for Tuesday is 118,000 head.

FEEDER CATTLE:

Open: Steady to 80 cents higher. Live cattle futures have shown light to moderate support early Tuesday, allowing follow through support to develop across the feeder cattle market. This is pushing nearby contracts 70 to 80 cents per cwt higher, while narrow gains are seen in late month contracts. Cash lean index for 1/10 is listed at $148.81, down 2.76. Open interest Friday fell 148 positions (52,112).

LEAN HOGS:

Open: Mixed. Early-week trade is showing mixed trade with most contracts holding firm support in nearby activity. This may help to spark some additional buyer support through the week, although traders seem to be looking for outside market direction. Cash bids are mixed. Most bids are steady to 50 cents higher early Tuesday. Open interest Friday liquidated 608 positions (243,483). Spot month February fell 6,447 positions (42,968) and April added 4,289 positions (94,375). Cash lean index for 1/10 is $68.46, up 1.81. DTN projected slaughter for Tuesday is expected to be 465,000 head.

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

(SK)

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