DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are mixed early Friday with U.S. stocks and the U.S. dollar index trading lower, while most commodities are higher. Energies are the exception with April crude oil down $1.86 a barrel.

LIVE CATTLE:

Open: 5 cents lower. April cattle are down 0.05 early Friday with another late-winter storm headed across the Midwest on Saturday. This time, the snow will stay to the northern states, rain to the southern states and ice in between. Thursday's cash trade saw light cash sales of $128 live and $205 dressed with more likely on Friday. Thursday afternoon's cold storage report showed 510.1 million pounds of beef in storage on January 31, up 3% from a month ago and up 2% from a year ago. Outside markets are mixed early Friday with the stock market and U.S. dollar index both modestly lower, while other commodities are leaning higher. Cash cattle are expected to hold steady on Friday with more business possibly developing after Friday's February 1 on-feed report. Dow Jones news projects Friday`s cattle slaughter at 115,000, up from 111,173 a year ago. Total open interest increased 6,014 to 432,601 on Thursday's slightly higher trade. April contracts fell 7,994 to 135,257 and June increased 6,745 to 151,746.

FEEDER CATTLE:

Open: 55 cents lower. April feeder cattle are down 0.15 early, a light initial reaction to Thursday's big gains. Thursday's 7-cent drop in corn prices ignited a surge of unexpected buying in feeders and rescued the April contract from Wednesday's new one-month low. Corn is up slightly early Friday as traders wait for USDA's WASDE report at 1 p.m. The Feeder Cash index for March 6 is listed at $139.76, down 18 cents from a week ago. Total open interest dropped 454 to 55,168 on Thursday's higher close.

LEAN HOGS:

Open: 25 cents higher. April hogs are up $0.77 early Friday, pushing a new high at the end of the week. Late Thursday, USDA said there were 562.7 million pounds of total pork in freezers on January 31, up 11% from a month ago, but down 3% from a year ago. The monthly increase was largely anticipated and is related to hogs' higher slaughter pace. Available hog supply plus a higher slaughter pace is likely to keep a lid on hog prices in 2019, but there is also a chance for help from higher export demand. Dow Jones expects Friday's hog slaughter at 472,000, up from 459,380 a year ago. The Lean Hog Index for March 6 was estimated at $51.75 down $0.89 from a week ago. Cash hog trade is expected to be steady to 50 cents lower early Friday. Total open interest was down 3,495 to 258,104 on Thursday's mixed trade. Open interest in the April contract fell 9,993 to 85,847 while June contracts increased 3,050 to 57,774.

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

(BAS)

Copyright 2019 DTN/The Progressive Farmer. All rights reserved.