DTN Before The Bell-Livestock

GENERAL COMMENTS

Activity in cattle country this morning will be limited to the distribution of new showlists. Our guess is that ready numbers at midmonth will be generally larger than last week. Bids and asking prices will probably remain poorly defined until Wednesday or later. The cash hog trade has generally opened steady to $1 higher with most buyers working the top end of the range. Corn futures are tradng 1-2 cents lower in the early going with traders cautiously waiting for updates on planting progress and export inspections. The stock market is higher in the opening round, supported by the easing of U.S./China trade concerns.

LIVE CATTLE:

Live futures have opened under pressure, off as much 50-100 points thanks to Friday's lower cash trade. Specs and commercial continue to struggle over the large spread between feedlot cash and board discounts. Open interest on Friday decreased by 3,100 (354,372). Spot June liquidated by 12,482 (80,280) and August expanded by 8,161 (144,165). DTN projected slaughter for today is 118,000 head.

FEEDER CATTLE:

Feeders have also stumbled out of the opening gate with triple digit losses evident through the complex. Contracts are obviously pressured by the dropping targets of deferred live issues. Open interest on Friday increased by 421 (45,174). CME cash feeder index for 05/10: 137.21, off 0.72.

LEAN HOGS:

Lean hog futures are moderately higher in the early going, supported by ideas of improving fundamentals. June seems to be gaing mre ground on deferreds. Spot May is scheduled to expire today at 12:00 (CDT). Open interest on Friday increased by 2,119 (243,967). Spot May liquidated by 284 (1,697) and June decreased by 6,367 (57,134). Cash lean index 05/10: 64.06, up 0.33. DTN projected slaughter for today is 465,000 head.

John A. Harrington can be reached at john.harrington@dtn.com

(SK)

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