DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are under light-to-moderate pressure early Friday morning with follow-through weakness most evident in feeder cattle trade. Corn markets are mixed in light early trade. Stock markets are higher, Dow Jones is 350 points higher while Nasdaq is up 102 points.

LIVE CATTLE:

Open: Steady to 30 cents lower.

Light pressure is seen through the entire live cattle complex early Friday morning as traders continue to focus on selling pressure, which has developed through the week. This could add increased softness through the end of the session Friday. Cash cattle activity is expected to be essentially done following light to moderate trade that developed Thursday. There could be some additional clean up trade through the day, although the tone of the market is expected to have already been set. Open interest Thursday liquidated 91 positions (335,962). Spot month October contracts lost 3,470 positions (14,650) and December contracts slipped 1,692 positions (125,535). DTN projected slaughter for Friday is 118,000 head.

FEEDER CATTLE:

Open: Steady to 50 cents lower.

Firm losses have redeveloped through feeder cattle trade with increased weakness seen following the concern of additional production costs developing through the complex. Limited volume is likely through the morning, but prices are expected to remain under pressure. Cash index for Oct. 10 is listed at $158.38, down $0.07. Open interest Wednesday fell 421 positions (56,926).

LEAN HOGS:

Open: Mixed.

Trade is sluggish early Friday morning with narrow trading ranges in the entire complex. Additional market activity may develop through the morning. The potential for late-week market stability could help to spark some late-week buying through the entire complex. Limited volume is expected to be through most of the morning. Cash hog trade Friday is expected $1 to $2 lower. Most bids are $1 lower. Open interest added 2,314 positions (230,770). Spot month October increased 250 positions (12,769) and December added 837 positions (100,580). Cash lean index for Oct. 9 is $69.34 up $0.01. DTN projected slaughter for Friday is at 462,000 head. Saturday runs are expected at 168,000 head.

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

(SK)

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