DTN Before The Bell-Livestock

GENERAL COMMENTS

Cattle trade slips lower as traders start to work through the numbers in the cattle on feed report when it comes to futures market direction. This may lead to additional pressure through the morning. Corn markets are higher in light early trade Monday. Stock markets are lower, Dow Jones is 85 points lower while Nasdaq is down 35 points.

LIVE CATTLE:

Open: 20 to 50 cents lower. Moderate pressure has slowly but steadily developed through the complex. This may add some additional pressure to the complex through the day with traders accounting for increased cattle available in feed yards, and lackluster marketing levels seen in August. Although nearby contracts have held narrow losses, the focus on limited buyer support will likely be the main draw in the live cattle complex. Cash cattle markets are expected to remain silent with inventory taking and show list distribution developing through the day. Bids and asking prices are not likely to be seen until near midweek with the potential of another late week trade developing. Open interest Friday gained 1,421 positions (323,591). Spot month October contracts lost 3,277 positions (45,869) and December contracts added 2,313 positions (118,190). DTN projected slaughter for Monday is 119,000 head.

FEEDER CATTLE:

Open: 20 to 40 cents lower. Early morning pressure has developed through the first few minutes of trade. Traders are adjusting market positions following the bearish cattle on feed report that posted August placements at the top end of the estimated range and well above early projections. This could add some follow-through pressure through most of the session Monday. Cash index for 9/20 is listed at $156.29, up 1.83. Open interest Friday added 519 positions (55,160).

LEAN HOGS:

Open: Mixed. Initial trade early Monday morning has hovered in a mixed but mostly lower trading range focusing on the pressure seen in the complex late last week and uncertainty if traders will move back into the market to expand the recent market support. The potential to help to bring some early week stability to the market could leave prices mixed through most of the session. Cash hog trade Monday is expected steady to $2.00 higher. Most bids are $1 higher. Open interest Friday fell 555 positions (216,319). Spot month October fell 1,270 positions (31,552) and December added 478 positions (99,398). Cash lean index for 9/20 is $59.09 up 1.65. DTN projected slaughter for Monday is at 465,000 head.

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

(SK)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.