DTN Before The Bell-Livestock

GENERAL COMMENTS

Outside markets are mixed early Thursday with Dow Jones futures down 38 points, the June U.S. dollar index up 0.25 and other commodities mixed to higher, including grains.

LIVE CATTLE:

Open: 32 cents higher. April cattle are up 0.95 early Thursday as livestock are still dealing with adverse weather. Thursday morning's weather map shows blizzard conditions working across the Northern Plains with high winds expected throughout the western Plains on Thursday. So far this week, boxed beef prices have shown small gains, one factor that should help support cattle prices. Outside markets are mixed early Thursday with the Dow Jones futures modestly lower and the U.S. dollar index trading higher. Other commodities are mixed to mostly higher. Cash cattle are expected to remain steady Thursday after light sales were reported Wednesday, roughly a dollar lower than a week ago. Dow Jones had no projection for cattle slaughter on Thursday, but USDA did estimate Wednesday's slaughter at 115,000. Total open interest was up 2,118 to 432,669 on Wednesday's slightly higher trade. April contracts fell 8,950 to 94,649 and June increased 8,214 to 176,317.

FEEDER CATTLE:

Open: 20 cents higher. April feeder cattle are up $0.32 early, staying within the same sideways range prices have seen since November. Corn is roughly steady early Thursday. The Feeder Cash index for March 12 is listed at $139.08, down 51 cents from a week ago. Total open interest increased 734 to 54,716 on Wednesday's slightly lower prices.

LEAN HOGS:

Open: 2 cents higher. April hogs are up $1.32 early Thursday after USDA reported 50,300 mt of pork sales for last week, 23,800 mt of which was to China. That news adds to ongoing concerns about the impact of African swine fever in Asia and feeds this week's bullish tone in the market. Prospects for increased U.S. pork exports are helping hog prices correct back from February's lows. Dow Jones had no projection for Thursday's slaughter, but USDA did estimate Wednesday's slaughter at 468,000. The Lean Hog Index for March 12 was estimated at $53.12 up $1.27 from a week ago. Cash hog trade is expected steady to higher early Thursday and has also received helped from a modest gain in this week's pork carcass prices. Total open interest was up 10,938 to 268,085 on Wednesday's mostly higher trade. Open interest in the April contract fell 8,478 to 45,813 while June contracts increased 7,185 to 82,857.

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

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