DTN Before The Bell-Livestock

A Quieter Start In Cattle And Hogs

Todd Hultman
By  Todd Hultman , DTN Lead Analyst
Connect with Todd:
(DTN photo by Nick Scalise)
GENERAL COMMENTS

Outside markets are slightly friendly for livestock early Tuesday with Dow Jones futures showing a small decline, the June U.S. dollar index down 0.15 and other commodities mixed to higher. May corn is slightly higher and April crude oil is up 45 cents a barrel.

LIVE CATTLE:

Open: 17 cents higher. April cattle are up 0.15 early Tuesday, staying close to resistance at $130.00 with more precipitation expected in the western Plains this week, adding to calving season difficulties. So far this week, boxed beef prices have shown modest gains from Friday, also helping keep cattle prices supported. Outside markets are a little friendlier early Tuesday. The Dow Jones futures are down 37 points and the June U.S. dollar index is down 0.15. Other commodities are mostly higher with slight early gains in the grains. Cash cattle are expected to remain steady Tuesday with no significant business expected. Dow Jones news projects Tuesday's cattle slaughter at 118,000, roughly even with 117,957 a year ago after USDA estimated Monday's slaughter at 119,000. Total open interest was down 823 to 433,491 on Monday's lower trade. April contracts fell 10,178 to 115,812 and June increased 5,665 to 161,219.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

FEEDER CATTLE:

Open: 22 cents lower. April feeder cattle are down $0.20 early, a quiet start and staying within the same sideways range prices have seen since November. Corn is up 3/4 cent early Tuesday. The Feeder Cash index for March 8 is listed at $139.28, down 31 cents from a week ago. Total open interest dropped 451 to 54,097 on Monday's lower close.

LEAN HOGS:

Open: 15 cents higher. April hogs are down $0.10 early Tuesday, a quieter start after two days of much higher prices. Hog supplies still seem plentiful and easily available for packer needs, but the higher prices of the past couple weeks make a good case for a trading range somewhere between the low $50s and probably the mid $60s. So far this week, pork carcass prices have been modestly higher, helping offer some support. Dow Jones expects Tuesday's hog slaughter at 478,000, still running high and up from 464,332 a year ago. USDA estimated Monday's slaughter at 475,000. The Lean Hog Index for March 8 was estimated at $51.98 up 5 cents from a week ago. Cash hog trade is expected to be steady early Tuesday. Total open interest was down 749 to 253,660 on Monday's higher trade. Open interest in the April contract fell 11,519 to 63,434 while June contracts increased 6,243 to 68,634.

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

(BAS)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]

Todd Hultman