DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are mixed early Monday with Dow Jones futures starting lower, the U.S. dollar index roughly steady and other commodities mixed outside of grains. May corn is up a penny and April crude oil is up 79 cents a barrel.

LIVE CATTLE:

Open: 17 cents lower. April cattle are down 0.45 early Monday after USDA said late Friday that February 1 cattle on-feed totaled 11.68 million head, up slightly from a year ago, while placements were down 5% and marketings were up 3%, close to what was expected. Last week's cash trade also saw prices hold steady from the week before at $128 live and $205 dressed, supported by modest gains in boxed beef and pork carcass values. Outside markets are mixed early Monday with the Dow Jones futures down 224 points and possibly weighing on cattle prices early. The March U.S. dollar index down 0.06, while other commodities are leaning higher outside of grains. Cash cattle are expected to remain steady on Monday with no significant business expected until later in the week. Dow Jones news projects Monday's cattle slaughter at 117,000, up from 114,158 a year ago. Total open interest increased 2,683 to 434,784 on Friday's higher trade. April contracts fell 8,825 to 126,195 and June increased 4,185 to 155,746.

FEEDER CATTLE:

Open: 52 cents lower. April feeder cattle are down $1.17 early, a quick initial reaction to last week's unexpected rally in feeder prices. Corn is a penny higher early Monday. The Feeder Cash index for March 7 is listed at $140.03, up 80 cents from a week ago. Total open interest dropped 569 to 54,558 on Friday's higher close, light profit-taking at the end of a higher week.

LEAN HOGS:

Open: 20 cents higher. April hogs are down $0.10 early Monday, showing hesitation after Friday's much higher close brought prices back above $60.00 for the first time in nearly a month. Hogs have found long-term support in the low $50s, but that doesn't necessarily mean prices have reason to trade significantly higher. Choppy trade with resistance in the mid $60s seems likely while slaughter continues to run high and is being easily sourced. Dow Jones expects Monday's hog slaughter at 476,000, still running high and up from 458,752 a year ago. The Lean Hog Index for March 7 was estimated at $51.71 down 42 cents from a week ago. Cash hog trade is expected to be steady to $1.00 higher early Monday. Total open interest was down 3,327 to 254,634 on Friday's higher trade. Open interest in the April contract fell 10,873 to 74,969 while June contracts increased 4,663 to 62,422.

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

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