DTN Before The Bell-Livestock

Cattle and Hog Futures Generally Mixed in Early Rounds

(DTN photo by Nick Scalise)
GENERAL COMMENTS

The cash cattle trade is very quiet this morning with first bids still to surface. Some showlists are priced around $118-plus in the South and $185 plus in the North. Hog buyers have resumed work in the early rounds with bids steady to 0.50 higher. Corn futures are 1-2 cents higher this morning, modestly supported by a decent weekly export sales total. The stock market is under pressure so far today with the Dow of 64 points and the Nasdaq down by 9. The threat of rising interest continues to be a bother.

LIVE CATTLE:

Live cattle contracts are mixed in the early going, up 37 to off 5. Short covering and profit taking may be supporting the front end, at least temporarily. Open interest grew further yesterday as prices crashed. Such as combo is technically bearish. Open interest on Wednesday increased by 2,068 (360,132). Spot June liquidated by 5,064 (68,983) and August expanded by 3,920 (155,294). DTN projected slaughter for today is 118,000 head.

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FEEDER CATTLE:

Feeder issues are slightly lower at this points with traders on both sides trying to catch their breath in the wake of aggressive selling through midweek. The pairing of larger open interest and sharply lower price action is disturbing here as well. Open interest on Wednesday increased by 969 (45,936). CME cash feeder index for 05/15: 135.67, off 0.25.

LEAN HOGS:

Lean prices are mixed in the opening hour with nearbys lower and deferreds somewhat higher (suggesting bull spreaders taking profits). Open interest on Wednesday decreased by 1,198 (243,081). Spot June liquidated by 3,162 (50,404) and July increased by 537 (65,866). Cash lean index 05/15: 66.14, up 0.91. DTN projected slaughter for today is 455,000 head. At this point, the Saturday kill looks around 81,000.

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

(SK)

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