DTN Before The Bell-Livestock

GENERAL COMMENTS

LIVE CATTLE:

Open: 10 cents lower. February cattle are down 0.32, under pressure early, but continuing to hold roughly sideways near their highest prices of the year. Boxed Beef prices have been steady to lower this week and the stock market remains a bearish concern, challenging its lowest prices of 2018. Last week's export sales of beef were light, at 10,200 mt. Cash cattle are expected to be steady on Thursday with outside markets showing investor anxiety this week, but starting calmer Thursday. Dow Jones projects Thursday's cattle slaughter at 120,000, up from 118,161 a year ago. Total open interest increased 1,963 to 350,324 on Wednesday's modestly lower trade. February contracts increased 507 to 135,162 and April increased 1,283 to 93,442.

FEEDER CATTLE:

Open: 12 cents lower. March feeder cattle are down 0.42 early, showing more bearish pressure than cattle, although prices are trying to hold sideways, above support at $140.00. Corn prices are steady early Thursday after dropping a few cents on Wednesday. The Feeder Cash index for 12/18 is listed at $145.61, up $0.64 from a week ago. Total open interest increased 61 to 49,588 on Wednesday's slightly lower trade.

LEAN HOGS:

Open: 20 cents lower. February hogs are down 0.62 early Thursday, continuing to sag lower, but staying in their sideways range with support near $58.00. Pork carcass prices are a couple dollars lower this week, showing bearish pressure from the high slaughter pace. African swine virus in China remains a supportive factor for U.S. hog prices and last week's 2018 export sales were bullish at 31,600 mt, thanks to top purchases from Mexico. Dow Jones expects Thursday's hog slaughter at 478,000, up from 468,274 a year ago. The Lean Hog Index for 12/17 was estimated at $55.07 down $0.91 from a week ago. Cash hog trade is expected to be steady to $1 lower early Thursday. Total open interest dropped 8,116 to 196,517 on Wednesday's slightly higher trade. Open interest in the February contract fell 1,499 to 75,732 while April contracts fell 388 to 45,900.

Todd Hultman can be reached at Todd.Hultman@dtn.com

(BAS)

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