DTN Before The Bell-Livestock

Hog Contracts Trade Moderately Higher in Opening Hour

(DTN photo by Nick Scalise)
GENERAL COMMENTS

Following light to moderate business in parts of feeding country yesterday, cattle buyers are back this morning knocking on doors with lower bids (i.e., $116 in the South; $115-115/$185 in the North). Asking prices are around $118-120 in the South and $118-120/$190 in the North. The cash hog trade has opened with bids ranging from steady to $1.50 higher (mostly $1 higher). Corn futures are a penny plus higher, somewhat supported by follow-through basis and firming basis levels. The stock market is higher in the early going with the Dow up 43 and the Nasdaq positive by 22.

LIVE CATTLE:

After opening mixed, live futures look mostly higher (i.e., up 22 to 35) as contracts move through the initial hour of business. Certainly a round or two of higher prices is not too much to asking following two consecutive sessions of triple-digit losses. Still, it remains to be seem if traders begin to serious reconsider board discounts once bears finish a certain amount of profit taking. Open interest on Tuesday increased by 939 (358,559). Spot June liquidated by 4,683 (74,379) and August jumped 4,588 (151,4149). DTN projected slaughter for today: 118,000 head.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

FEEDER CATTLE:

Feeder issues are narrowly mixed in the early going (i.e., up 50 to off 19. Action here will no doubt continue to mirror the general price direction in live cattle. Total commitment on Tuesday increased 112 (46,044). 5/14 cash index: 224.12, off 0.23.

LEAN HOGS:

Lean hog futures are off to a better start this morning with prices currently 10 to 67 higher. Both cash and product markets are finally in the bullish, seasonal groove, a fact that should make board premiums easier to defend (at least in the short term). Open interest on Tuesday decreased by 979 (243,336). Spot June lost 2,402 (53,612) and July declined by 756 (65,340). Cash lean index 05/14: 65.23, up 0.58. DTN projected slaughter for today: 460,000.

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

(SK)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]