DTN Before The Bell-Livestock

GENERAL COMMENTS

Livestock futures are mixed in a narrow trading range early Wednesday morning. The overall lack of direction in the market has more to do with federal holiday closing due to the Day of Mourning for President Bush. This will likely keep trade sluggish through most of the session. Lean hog and Live cattle trade remains inactive with narrow trading ranges holding mixed price levels early Wednesday morning. Feeder cattle futures are holding narrow gains as follow through support is trying to develop. Corn markets are steady in light early trade. Stock markets are closed for the day.

LIVE CATTLE:

Open: Mixed. Narrow trading ranges are seen early Wednesday morning with prices hovering in single-digit levels in most contracts. The lack of outside market direction due to the National Day of Mourning is keeping most traders out of the market for now. This is relieving some of the uncertainty seen earlier in the market surrounding potential trade with China. Sluggish market direction is expected to be seen through the end of the session. Cash cattle interest is expected to improve through the day, although active trade may not develop until late in the week. Asking prices are starting to develop at $120 to $122 live and $190 dressed. Bids are not redeveloped at this point in the morning. Open interest Tuesday lost 901 positions (336,872). Spot month December contracts lost 2,562 positions (27,364) and February contracts gained 454 positions (137,113). DTN projected slaughter for Wednesday is 120,000 head.

FEEDER CATTLE:

Open: Steady to 20 cents higher. Limited support in a very narrow trading range is seen through the first few minutes of trade. This is keeping traders generally quiet as overall market direction is expected to be limited through the day. It is likely to be seen as many other federal holidays, with traders looking to develop additional trade later in the week, even though markets will trade a normal schedule through the day. Cash index for 12/03 is listed at $146.72 down $1.13. Open interest Tuesday gained 37 positions (49,817).

LEAN HOGS:

Open: Mixed. Limited activity is seen through the lean hog futures trade with prices mixed from 50 cents lower to 30 cents higher. The fact that government offices are closed due to the national day of mourning for President Bush, is limiting overall activity through the complex. Cash hog trade Wednesday is steady to $1.00 lower. Most bids are 50 cents lower. Open interest fell 851 positions (214,942). Spot month December fell 1,494 positions (23,386) and February added 76 positions (77,499). Cash lean index for 12/03 is $56.38 up 0.02. DTN projected slaughter for Wednesday is 477,000 head. Saturday runs are expected at 185,000 head.

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

(BAS)

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