DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are a little helpful for livestock prices early Wednesday with Dow Jones futures up 105 points, the June U.S. dollar index down 0.10 and other commodities mostly higher, except for grains.

LIVE CATTLE:

Open: 5 cents lower. April cattle are down 0.22 early Wednesday, showing some follow-through after yesterday's selling. Wednesday morning's weather map shows rain throughout the southwestern U.S. Plains and snow in Wyoming that is expected to become a blizzard in the northwestern Plains the next two days. High wind warnings will also be stressful the next two days across the southwestern U.S. Plains. So far this week, boxed beef prices have shown modest gains since Friday, one factor that should help support cattle prices. Outside markets are leaning bullish early Wednesday with the Dow Jones futures up 105 points and the U.S. dollar index a little lower. Energies and metals are trading higher, while grains are mostly lower. Cash cattle are expected to remain steady Wednesday with no significant business expected. Dow Jones news projects Wednesday's cattle slaughter at 117,000, down from 118,926 a year ago after USDA estimated Tuesday's slaughter at 120,000. Total open interest was down 736 to 431,696 on Tuesday's lower trade. April contracts fell 11,331 to 103,748 and June increased 7,942 to 168,956.

FEEDER CATTLE:

Open: Unchanged. April feeder cattle are up $0.35 early, staying within the same sideways range prices have seen since November. Corn is down a penny early Wednesday. The Feeder Cash index for March 11 is listed at $139.04, down 59 cents from a week ago. Total open interest increased 187 to 54,003 on Tuesday's lower close.

LEAN HOGS:

Open: 45 cents higher. April hogs are up $0.67 early Wednesday, attempting their fifth-consecutive day higher with help from ongoing concerns about African swine fever in Asia. Earlier this week, China's Ag Ministry said the hog population was down 13% in January from a year ago. China's hog prices were reported at their highest level in over a year. Prospects for increased pork exports from the U.S. are helping prices correct back from February's lows. Dow Jones expects Wednesday's hog slaughter at 476,000, still running high and up from 464,844 a year ago. USDA estimated Tuesday's slaughter at 477,000. The Lean Hog Index for March 11 was estimated at $52.38 up 44 cents from a week ago. Cash hog trade is expected steady to higher early Wednesday. Total open interest was up 3,750 to 257,378 on Tuesday's higher trade. Open interest in the April contract fell 9,306 to 54,327 while June contracts increased 7,117 to 75,708.

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

(BAS)

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