DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are not so friendly for livestock early with U.S. stocks trading lower and the U.S. dollar index near its highest prices in a year and a half.

LIVE CATTLE:

Open: 10 cents lower. April cattle are steady early with another snowstorm moving across the central Midwest. This time however, the bitter cold temperatures are confined to the northern Midwest, while the southern Plains are more moderate, mostly above freezing. USDA said last week's export sales totaled an impressive 24.7 mt, helped by South Korea and Japan. Outside markets are slightly hostile early Thursday with the stock market modestly lower and the U.S. dollar index trading near its highest prices in a year and a half. Cash cattle are expected to hold steady on Thursday, with this week's business probably holding off until after Thursday afternoon's cold storage report and possibly after Friday's on-feed report. Dow Jones news projects Thursdays' cattle slaughter at 115,000, down from 119,593 a year ago. Total open interest increased 3,323 to 427,075 on Wednesday's slightly higher trade. April contracts fell 1,484 to 143,434 and June increased 2,229 to 145,184.

FEEDER CATTLE:

Open: 10 cents higher. April feeder cattle are up 0.10 early, a light initial bounce after Wednesday's new one-month low. Prices are still holding above support at $141.00 with some help from low corn prices that don't appear to be going anywhere. May corn is down 2 cents early Thursday. The Feeder Cash index for March 5 is listed at $139.59, down 0.87 from a week ago. Total open interest increased 326 to 55,657 as Wednesday's prices fell to a new one-month low.

LEAN HOGS:

Open: 85 cents higher. April hogs are up 0.72 early Thurday, showing some bullish response from USDA's report of 24,400 mt of pork sales last week, thanks to the top buyer, Mexico. After three months of falling prices, April hog prices appear to be finding support near the low $50s where support has often been found the past fifteen years. Dow Jones expects Thursday's hog slaughter at 477,000, up from 466,877 a year ago. The Lean Hog Index for March 5 was estimated at $51.85 down $0.97 from a week ago. Cash hog trade is expected to be steady to $1 lower early Thursday. Total open interest was up 468 to 261,496 on Wednesday's lower trade. Open interest in the April contract fell 2,320 to 95,591 while June contracts increased 2,382 to 54,739.

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

(BAS)

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