DTN Before The Bell-Livestock

GENERAL COMMENTS

Narrow market shifts are seen in cattle trade with light buyers support initially moving into the complex. But the lack of follow-through support is causing prices to wander in a narrowly mixed range. Corn markets are lower in light early trade. Stock markets are higher, Dow Jones is 335 points higher Nasdaq is up 101 points.

LIVE CATTLE:

Open: Mixed. Initial light buyer support that moved into live cattle futures at opening bell was short lived as traders quickly adjusted to narrow single-digit losses in most contracts. Limited trade volume is expected to be seen through most of the morning with cattle traders splitting their attention on outside market moves following the Thanksgiving holiday as well as the development of beef values later in the morning. This may leave most markets generally undeveloped most of the day. Cash cattle interest is expected to remain sluggish Monday with both sides assessing overall movement seen during the holiday week. Most of the trade developed on Wednesday, before the holiday. Bids and asking prices are expected to remain quiet due to inventory taking and show list distribution taking place during the day. Open interest Friday added 1,668 positions (341,462). Spot month December contracts lost 1,779 positions (40,275) and February contracts added 802 positions (129,833). DTN projected slaughter for Monday is 115,000 head.

FEEDER CATTLE:

Open: Steady to 30 cents higher. Limited activity is seen through the feeder cattle complex with narrow gains holding in all contract months during the opening minutes of trade. Increased focus on market stability through the end of the month of November is likely to help spark some additional underlying trade volume through the entire complex. Cash index for 11/22 is listed at $148.27, up 0.66. Open interest Friday fell 289 positions (48,933).

LEAN HOGS:

Open: 20 to 80 cents lower. Early pressure is seen in lean hog futures trade following the weekend break as traders take the opportunity to square market positions following the late-week rally that exploded through the lean hog complex. Market moves last week has narrowed the short term trading range significantly, and potentially allowing for markets to hover within this confined price level through the next couple of days. If price pressure continues to develop during the morning, concerns of more aggressive end of the month pressure is likely to develop. Cash hog trade Monday is steady to $1.00 lower. With bids scattered through the range. Open interest added 3,874 positions (229,366). Spot month December gained 200 positions (36,161) and February added 1,620 positions (78,716). Cash lean index for 11/20 is $58.02 down 0.21. DTN projected slaughter for Monday is at 435,000 head.

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

(BAS)

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