DTN Before The Bell-Livestock

GENERAL COMMENTS

Light to moderate price shifts are seen early Wednesday morning in all livestock trade. This is creating some additional uncertainty through the entire market based on limited activity developing in the opening minutes of trade. Corn markets are steady in light early trade. Stock markets are lower, Dow Jones is 170 points lower while Nasdaq is down 21 points.

LIVE CATTLE:

Open: Mixed. Given the wide-ranging price swings in the feeder cattle complex early in the week, markets seem to be focusing on finding a sense of stability. Prices are mostly steady with most contract months showing single-digit price swings at best through the first few minutes of trade. This could spark some additional underlying support through the complex, as traders may focus on increased overall interest in all outside markets including grain trade as well as shifts in the live cattle complex. Cash index for 10/15 is listed at $155.36, down $0.90. Open interest Tuesday fell 374 positions (56,003).

LEAN HOGS:

Open: Mixed. Initial trade Wednesday morning is mixed in a moderate-to-wide range as nearby contracts are holding moderate pressure of 2 cents to 50 cent losses based on early-morning positioning being done by commercial traders stepping foot into the market. Firm gains have slowly developed in the opening minutes of trade in deferred contracts as summer to fall contract months have posted gains from 20 cents to 90 cents per cwt. Although trade volume remains slow, the focus on higher prices in late-term contract months is helping to bring stability to the entire complex. Cash hog trade Wednesday is expected steady to $1 lower. Most bids are 50 cents lower. Open interest fell 5,034 positions (227,166). Spot month December added 1,194 positions (103,855) and February gained 218 positions (40,685). Cash lean index for 10/15 is $68.59 down $0.16. DTN projected slaughter for Wednesday is at 477,000 head. Saturday runs are expected at 232,000 head.

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

(SK)

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